AS PRESIDENT Joe Biden prepares a new wave of tariffs against China, a US soybean trade group is pushing for higher levies on Chinese used cooking oil that it says is undercutting American crops used for biofuels.

A group that represents the biggest US soybean processors, including Cargill, Bunge Global and Archer-Daniels-Midland, wants the levies to be higher than the current 15.5 per cent rate, according to a notice the National Oilseed Processors Association (Nopa) sent to its members over the weekend that was seen by Bloomberg.

Nopa chief executive officer Kailee Tkacz Buller said the memo was sent in response to rumours of possible additional tariffs being applied on used cooking oil. Nopa members support a boost on par with other clean energy sources, such as electric vehicles and solar, to level the playing field, Buller said.

Soybean crushers worry a flood of used cooking oil imports from China is weakening demand for US crop-based ingredients that can be used to make renewable diesel and sustainable aviation fuel. There’s also widespread, unconfirmed speculation the used oil from Asia may not be authentic and instead is mixed with fresh vegetable oils, such as palm, potentially distorting commodity values and undermining US biofuel laws.

Soy oil values are down so far this year, though futures in Chicago have seen an uptick in the last couple of trading days as commodities traders await tariff news. Biden on Tuesday (May 14) is expected to unveil an increase in some tariffs first imposed under former president Donald Trump. It’s not known if the announcement will include used cooking oil.

White House officials declined to comment.

US growers of soy and other crops used to make renewable diesel stand to lose the most from the trade imbroglio, according to agriculture traders. That sets the stage for possible tension between farm groups and biofuel producers who are making money importing used cooking oil from China.

US imports of used cooking oil more than tripled in 2023 from a year earlier, with more than 50 per cent coming from China, according to the US International Trade Commission. The surge is eroding profits for processors who crush whole soybeans to extract the oil, forcing some plants to slow down.

The increased imports also jeopardise plans to ramp up US crushing capacity amid a flurry of government incentives aimed at making lower-carbon fuels to help fight climate change.

Nopa plans to discuss the tariff issue with members this week as well as look another possible option, according to the memo. BLOOMBERG

https://www.businesstimes.com.sg/internatio...oost-us-tariffs

So they process it and sell back to US consumers?

No wonder there are so many obese Americans.

This post has been edited by 30624770: May 30 2024, 04:26 PM

I read. That’s why I question why they importing used cooking oil from China. The article title is not like what I posted. The title I change because I am really puzzled why they need to resort to importing China’s used cooking oil and reprocess them? Do they have a shortage problem?

So, what is the reason they importing those oil? They facing oil shortages problems?

They rather import used cooking oil than new palm oil which is kind of stupid

US fast food also use a lot of oil for frying

How is using used cooking oil environmental friendly

Isn’t it unhealthy?

So, US crop based oil is used to make diesel and aviation fuel?