President Donald Trump said Tuesday that the administration could undertake targeted retaliation over China’s ongoing refusal to buy U.S. soybeans, including by limiting imports of Chinese cooking oil.
“I believe that China purposefully not buying our Soybeans, and causing difficulty for our Soybean Farmers, is an Economically Hostile Act” Trump wrote to his Truth Social page. “We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution.”
Trump added that the U.S. can “easily produce Cooking Oil ourselves, we don’t need to purchase it from China.”
The White House did not immediately respond to a question from Agri-Pulse on what options might be on the table, or if the president was referring to used cooking oil.
Canada, Europe and Indonesia are the largest U.S. cooking oil suppliers, according to the Agriculture Department. But China has become a significant supplier of used cooking oil for use in biofuel production.
Imports of used cooking oil from China increased tenfold between 2022 and 2024, according to U.S. trade data. The oil, classified as a waste feedstock, received a very low carbon-intensity score under state and federal low carbon fuel incentive programs, including California’s low carbon fuel standard.
But in the “One Big Beautiful Bill” signed into law earlier this year, Congress tightened eligibility for the Inflation Reduction Act’s 45Z Clean Fuel Production credit to fuel produced from North American feedstocks beginning in 2026. Accordingly, used cooking oil imports from China have fallen substantially this year.
China also discontinued an export tax rebate last year, reducing the incentives for Chinese exporters.
Further, the Environmental Protection Agency has proposed halving the incentives allocated to fuels made with imported feedstocks under its Renewable Fuel Standard.
Beijing has not placed any orders for the new crop of U.S. soybeans, and growers have been hoping increased domestic demand for biofuels and sustainable aviation fuel could offer a lifeline.
If the president is aiming to support soybean growers, Paul Winters, director of public affairs at Clean Fuels Alliance America, tells Agri-Pulse, the administration should swiftly finalize “the robust RFS volumes that EPA proposed and finalizing rules for the 45Z credit.”
Devin Mogler, president and CEO of the National Oilseed Processors Association, agrees that domestic biofuel policies can absorb some of the surplus production created by China's retreat from the market.
"We recognize the pain that soybean farmers are dealing with right now, and we think that strong domestic biofuel policies are a great way to address that concern in the near- to medium-term," Mogler told Agri-Pulse.
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"All these crush plants got built to feed the growing biodiesel and renewable diesel industry," Mogler said, but much of the increase in demand so far has been met by imported feedstocks. The measures in the OBBB and proposed adjustments to other incentive programs are helping, he said, but trade measures could further catalyze the pivot to more domestic feedstocks.
Mogler added that he is "glad" that Trump is recognizing that Chinese used cooking oil has been sold onto the American market below market value to the detriment of U.S. feedstock growers.
The American Soybean Association also welcomed the president's interest in promoting domestic feedstocks like soybean oil in clean fuel production, but stressed that U.S. growers want to see the Chinese market return.
"As trade negotiations continue deep into harvest season, we continue to hope that discussions can get back on track to restore our market access to the China market," a statement from the group reads. But adds that "ASA appreciates President Trump standing by soybean farmers and acknowledging the difficulty facing farmers."
"The Administration has proposed historic volumes for renewable diesel and biodiesel under the Renewable Fuel Standard, and proposed discouraging the importation of foreign biofuels and feedstocks by discounting their value by 50% to meet RFS obligations. We urge the Administration to finalize this proposal and continue to champion biofuel production using U.S. soybean oil," the statement continues.
The president's comments come just days after he reignited trade tensions by announcing a return to triple-digit tariffs on Chinese imports beginning Nov. 1. After China expanded its export controls of rare earth materials, Trump said the U.S. would slap new 100% tariffs on all imports.
China has not responded with any new tariff announcements but has vowed to “take resolute measures” to protect its interest.
U.S. and Chinese officials met on Monday to discuss the latest trade tensions.
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