WASHINGTON: China’s proposed 45% tariff on US ethanol imports would block an estimated 20 million gal/month of shipments, deal a blow to US producers’ export ambitions and make China’s own E10 target unreachable, according to S&P Global Platts Analytics.
US ethanol exports to China have been on the rise in recent months, despite an existing 30% tariff imposed in January 2017.
China proposed early Friday adding an additional 15% tariff in retaliation to US President Donald Trump’s trade action Thursday targeting China’s technology and manufacturing industries. The proposed hike was part of a wider statement by China’s Ministry of Commerce listing 128 commodities representing $3 billion in trade that could be subject to duties.
“I think that would probably cut us off most of the time,” Bruce Pickover, Platts Analytics’ senior director for global biofuels, said of US ethanol exports to China.
“The US has the cheapest ethanol in the world and has 10 markets where it sends more ethanol to than China,” said Corey Lavinsky, Platts Analytics director of global biofuels. “If China adds more barriers to trade, there are still plenty of other destinations where the US can send its ethanol.”
