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Clean Fuels Alliance calls on USTR to fix loophole giving imports unfair advantage

Clean Fuels Alliance America is asking the U.S. Trade Representative to close the gap on imported renewable diesel exempt from reciprocal tariffs.

Vice President of Federal Affairs Kurt Kovarik tells Brownfield since April, tariff exemptions have been made for many imported energy products, including renewable diesel, while new tariffs are in place on renewable feedstocks.

“With the tariffs placed on foreign feedstock, we now have a situation where renewable diesel offshore has access to feedstocks that are foreign available, produce that renewable diesel offshore, and imported into the United States duty-free.”

He says the loophole gives preferential treatment to imports and undercuts biodiesel production, and soybean farmers who provide the feedstock.

“Our industry is operating at around 50 to 60 percent of its capacity,” he says. “There is no concern for the consumer in terms of a supply shortage of renewable diesel. We have the capacity in the United States to produce it. It’s just that the market economics right now are not favorable.”

Kovarik says the administration needs to identify U.S. export opportunities and trade barriers that need to be addressed.

He estimates more than three million barrels of renewable diesel, mostly from Singapore, have been imported into the U.S. this year.