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.