Trade war hurting U.S. ethanol industry ‘badly’ – U.S. Grains Council

Source: By Carl Surran, SA • Posted: Thursday, May 16, 2019

The U.S.-China trade war is “badly” hurting the U.S. ethanol industry, Mike Dwyer, chief economist of the U.S. Grains Council, said at an event at New York Sugar week.

“Without the tariff protection we would probably supply 90%-plus of all [ethanol] import needs they [China] had,” Dwyer said while on a panel with Renewable Fuels Association chief economist Scott Richman.

While domestic measures such as the promised expansion of higher ethanol gasoline blends such as E15 help, trade issues must be resolved for the industry to thrive, Dwyer said, adding “if this trade war ended tomorrow you would see margins expand by $0.10 a gallon.”