Fair trade policies and increased incorporation in U.S. international energy engagements will grow American agriculture and give American ethanol producers greater access to global markets. Current trade negotiations could eliminate unfair trade practices and build upon U.S. ethanol’s robust trade surplus.
Resolving tariff and non-tariff trade barriers, including inaccurate carbon intensity scores, will help U.S. exporters satisfy growing ethanol demand across the globe.
Overview
The U.S. ethanol industry exported a record 2.18 billion gallons of ethanol in 2025 — valued at $4.8 billion. Those exported gallons were made with more than 754 million bushels of U.S. corn — valued at more than $3 billion. U.S. ethanol also produces valuable co-products, including nutrient-rich animal feed known as dried distillers’ grains (DDGs). In 2025, the U.S. ethanol industry exported 11.6 million metric tons of DDGs, valued at $2.8 billion.
Our policy asks
- Support and encourage U.S. trade diplomats to continue to implement newly formed trade agreements, frameworks, purchase agreements, including in the United Kingdom, Japan, Indonesia, and Guatemala.
- Encourage U.S. trade diplomats to combat unfair trade barriers and tariffs imposed on American ethanol — including by countries that restrict imported fuel ethanol (India), have prohibitive tariffs (Brazil, China), or inaccurately restrict corn feedstocks (EU, U.K.).
- Expand current ethanol blending opportunities (Canada, Vietnam, Philippines, Japan) and open new export opportunities for biofuels across the globe (Mexico).
- Ensure strong U.S. government engagement in international organizations to ensure international lifecycle emissions models accurately, scientifically, and fairly reflect U.S. ethanol’s improved efficiencies and circumstances. This will ensure export market potential for U.S. ethanol as countries develop aviation and maritime emission reduction programs.
Focus on Brazil and Mexico
In July, the Office of the U.S. Trade Representative (USTR) launched a Section 301 investigation into Brazil’s unfair trade practices, including its market access restrictions on U.S. ethanol. Brazil has enjoyed duty-free access to the U.S. market and can participate in the U.S. Renewable Fuel Standard and state-based low carbon fuel programs. Conversely, U.S. ethanol faces an 18 percent tariff in Brazil and no U.S. ethanol producer has been qualified under Brazil’s low carbon fuel program, RenovaBio. Brazil also seeks preferential treatment for their second-crop corn within international organizations while misleading global policymakers about U.S. ethanol.
New leadership in Mexico is reversing earlier disinterest in ethanol blending, which could result in a nearly one-billion-gallon market and make a dent in the U.S. agricultural trade deficit. Shifting Mexico’s fuel policy to support American agriculture will require all-in U.S. government support.