Clean Fuels asks US Trade Representative to close reciprocal-tariff loophole on imported renewable diesel

Clean Fuels Alliance America wrote U.S. Trade Representative Jamieson Greer Oct. 22, asking him to close a loophole in the administration’s reciprocal-tariff regime.

Under President Donald 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 wrote.

“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,” the letter stated.

In the letter, Clean Fuels asked the administration to modify the order and impose consistent tariffs on imported renewable diesel.

Additionally, Clean Fuels asked Greer to seek greater global market access for U.S. farmers and biomass-based diesel producers.

“Growing U.S. biodiesel, renewable diesel and SAF production is one bright spot for U.S. farmers facing pressure from the global market,” said Kurt Kovarik, Clean Fuels’ vice president of federal affairs.

“Domestic biomass-based diesel represents 10 percent of the value of all U.S.-grown soybeans,” he added. “U.S. trade policy should be consistent in supporting U.S. farmers and fuel producers.”

A copy of the letter is available here.