Lula assigns Tebet to present measures against U.S. ethanol tariffs

President Luiz Inácio Lula da Silva has appointed Simone Tebet to communicate the administration's strategy against U.S. tariffs affecting Brazil's ethanol industry. Tebet, a pre-candidate for the Senate in São Paulo, is expected to explain how the government's measures will support producers.

The government recently decided to raise the mandatory ethanol content in gasoline from 30% to 32%. This move aims to prevent domestic fuel price increases, particularly in light of the conflict in Iran. The administration believes this policy will outweigh potential losses from reduced exports to the United States.

According to calculations presented by Tebet, former Minister of Planning, U.S. surcharges could lead to a decrease of 250 million liters in annual exports. However, the increase in domestic ethanol blending is projected to boost internal consumption by 1 billion liters over the same period. Political strategists see Tebet as a valuable asset for engaging with this voter base, capable of overcoming resistance and attracting support for the Workers' Party.

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The Workers' Party considers Simone an asset with this electorate. She can break resistance, recover votes the party once had and eventually lost, and gain votes it wouldn't otherwise get.