Japan and Indonesia Trade Deals Benefit Ethanol and Ag

Cindy Zimmerman Leave a Comment

The framework of trade agreements with Japan and Indonesia announced this week will benefit U.S. farmers and ethanol producers, according to the Renewable Fuels Association.

President Donald Trump announced a landmark agreement with Indonesia on Tuesday that will eliminate tariff barriers, on a preferential basis, on over 99% of U.S. products exported to Indonesia across all sectors, exempting U.S. food and agricultural products from all of Indonesia’s import licensing regimes including its commodity balance policy.

President Trump announced a landmark economic agreement with Japan on Wednesday As part of this agreement, Japan will purchase $8 billion in U.S. goods, including corn, soybeans, fertilizer, bioethanol, and sustainable aviation fuel. Japan will immediately increase imports of U.S. rice by 75%, with a major expansion of import quotas, and imports from Japan will be subject to a baseline 15% tariff rate.

“These deals will ultimately help open important Asian markets and allow greater access for American farm products, renewable fuels, and co-products like distillers grains,” said RFA President and CEO Geoff Cooper. “Breaking down barriers to fair trade strengthens our rural economy and the United States as a whole.”

Cooper added that Indonesia and Japan are especially important markets for U.S. distillers grains that continue to grow. Indonesia was the fourth-largest export market in 2024, importing 987,000 metric tons—a 6 percent increase over 2023—while Japan ranked eighth, purchasing 454,000 metric tons, a 15 percent increase over the prior year. Both countries also are potentially large future markets for exports of U.S. ethanol, sustainable aviation fuel, and other renewable fuels.

aviation biofuels, biofuels, Distillers Grains, Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

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