Brazil mulls cutting ethanol import tax in nod to Trump, report says

Brazil's government is considering cutting import taxes on ethanol in a bid to appease U.S. President Donald Trump and as a way to help tame inflation, newspaper O Globo reported on Friday, citing sources.

By reducing ethanol import taxes, Brazil is hoping to attempt to convince the U.S. government to make an exception to the Latin American nation in a recently announced 25% tariff on aluminum and steel imports, the report said.

Brazil's industry and trade ministry did not immediately respond to a request for comment.

Earlier this month, the White House released a fact sheetciting Brazil's ethanol tariffs as an example of unfair trade practices. At the time, energy and mining minister said that a potential U.S. tariff on the fuel would be unreasonable.

Ethanol and sugar trade is typically negotiated together, and the United States maintains a tariff on sugar, the minister argued.

Brazilian Vice President Geraldo Alckmin was reportedly set to have a call with U.S. Commerce Secretary Howard Lutnick on Friday to discuss tariffs.