Clean Fuels Alliance Urges U.S. to Close Renewable Diesel Tariff Loophole

The Clean Fuels Alliance America sent a letter to U.S. Trade Representative Jamieson Greer on October 22, urging the government to close a loophole in the reciprocal tariff system. Under Executive Order 14257, both petroleum diesel and renewable diesel are classified under the same tariff code, allowing renewable diesel imports to enter the U.S. duty-free. The alliance warned that this loophole puts domestic biodiesel, renewable diesel, and sustainable aviation fuel (SAF) producers at a competitive disadvantage.

The group called for amending the order to impose equal tariffs on imported renewable diesel and to expand global market access for U.S. farmers and fuel producers. Kurt Kovarik, the alliance’s Vice President of Federal Affairs, emphasized that bio-based diesel supports about 10% of U.S. soybean value and that trade policy should consistently strengthen American agriculture and clean fuel industries.