Clean Fuels Asks USTR to Close Reciprocal Tariff Loophole on Imported Renewable Diesel

(Clean Fuels Alliance America) Today, Clean Fuels Alliance America wrote U.S. Trade Representative Jamieson Greer, asking him to close a loophole in the administration’s Reciprocal Tariff regime. Under President Trump’s Executive Order 14257 Annex II, diesel and renewable diesel are both exempted from reciprocal tariffs because both are classified under the same Harmonized Tariff Schedule heading.

“This loophole invites duty-free access to the United States for imported renewable diesel, putting U.S. biodiesel, renewable diesel, and sustainable aviation fuel (“SAF”) producers –who are essential to America’s energy security and to U.S. farm security – at a competitive disadvantage,” Clean Fuels writes. “Given the ongoing imports of foreign renewable diesel and current challenges for domestic producers and farmers, we ask that you take prompt action to close this loophole.”

In the letter, Clean Fuels asks the administration to modify the order and impose consistent tariffs on imported renewable diesel. Additionally, Clean Fuels asks Greer to seek greater global market access for U.S. farmers and biomass-based diesel producers.

Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels, added, “Growing U.S. biodiesel, renewable diesel, and SAF production is one bright spot for U.S. farmers facing pressure from the global market. Domestic biomass-based diesel represents 10 percent of the value of all U.S. grown soybeans. U.S. trade policy should be consistent in supporting U.S. farmers and fuel producers.”

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil, and animal fats, the clean fuels industry is a proven, integral part of America’s clean energy future. Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and sustainable aviation fuel supply chain, including producers, feedstock suppliers and fuel distributors. Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board and state checkoff organizations. READ MORE

Excerpt from DTN Progressive Farmer: President Trump's Executive Order 14257, "Regulating Imports with a Reciprocal Tariff" imposed new tariffs on a wide range of imported goods, including the renewable feedstocks to which foreign producers have "unfettered" access.

"At the same time, the Executive Order's Annex II exempted from reciprocal tariffs imports of many energy products, including petroleum-based diesel classified under HTSUS subheading 2710.19.45 and renewable diesel,

"The end result is that foreign renewable diesel producers have access to tariff-free renewable feedstocks to produce renewable diesel and can then access the U.S. market without paying reciprocal tariffs. Since the start of this year, foreign renewable diesel producers have sent more

than 3.1 million barrels of renewable diesel -- primarily from Singapore -- to the United States. Unfortunately, much of the U.S. industry is idle or running significantly below capacity, due to policy uncertainty."

Clean Fuels said that since biomass-based diesel production supports 10% of the value of every bushel of soybeans grown in America, the situation is "adding to the pressures" on U.S. agriculture.

The reciprocal tariff order's lists of goods subject to tariffs and exemptions were modified in July and September, according to the letter.

"We ask that you support U.S. biomass-based diesel producers and farmers by again modifying the order and imposing consistent tariffs on imported renewable diesel," Clean Fuels said.

"Simultaneously, we ask that in trade negotiations you seek greater market access in global markets for U.S. biodiesel, renewable diesel, and SAF." READ MORE