Beloved kid American brought up (5)
I believe the answer is:
'beloved' is the definition.
(both are terms of endearment)
'kid american brought up' is the wordplay.
'kid' becomes 'rag' (both can mean to tease).
'american' becomes 'US' (United States).
'brought up' is a reversal indicator (in a down clue, letters go up).
'ragus' backwards is 'SUGAR'.
(Other definitions for sugar that I've seen before include "White or brown sweetener" , "Cane or beet sweet stuff" , "White crystalline carbohydrate" , "Mild oath (granulated?)" , "Sweetening agent" .)