Story by Matt Kaye, Berns Bureau, Washington via NAFB News Service
Brazil is in the crosshairs of U.S. trade—twice. And one senator says there’s a good reason for that. Iowa Senator and Judiciary Chair Chuck Grassley says the Section 301 probe just launched against Brazil serves as back-up in case the president’s tariffs, including a 50 percent duty against Brazil, are overturned.
“It’s going to end up in the Supreme Court,” says Grassley. “But just in case the Supreme Court would say the president has acted way beyond the power Congress gave in a 1977 law, we got this 301 case to back up the injustices that Brazil is giving with trade with the United States.”
U.S. ethanol faces a longstanding 18 percent Brazilian tariff that has all but excluded U.S. fuel from what was once a top ethanol market.
Separately, the American Soybean Association is calling on President Trump to prioritize ending stiff soybean tariffs in talks with China and commitments for future purchases. But how can China be trusted after failing to meet its Phase I Ag commitments?
“China should have kept its word, but I think the force to make that happen was Trump,” according to Grassley. “And Trump was defeated in 2020, so they have four years of grace. Now Trump’s back in office. He’s going to be more forceful than Biden.”
President Trump wrote on Truth Social recently that he hoped to hammer out a new deal with China that would quickly quadruple its soybean orders. That after extending talks another 90 days to November 10th.
