Key Insights
➤ Supreme Court ruling ended IEEPA tariff authority. On February 20, 2026, the U.S. Supreme Court ruled that IEEPA does not authorize the President to impose tariffs. Later that day, President Trump signed an executive order imposing a temporary 10% global tariff under Section 122 and subsequently increased the rate to 15%.
➤ IEEPA tariffs drove trade diversion in biofuel feedstocks. China’s UCO exports to the U.S. fell 55% (from 1,200 to 540 thousand metric tons, Jan–Nov), but non-China IEEPA imports rose 49%, led by Australia (+400%), South Korea (+110%), and Malaysia (+36%).
➤ Total UCO imports stayed elevated despite tariffs. Total UCO imports through November 2025 reached roughly 2.0 million metric tons, down modestly from 2.3 million in 2024 but still well above the 2022–2024 average of 1.3 million, reflecting continued strong demand from renewable diesel capacity.
➤ Brazilian tallow imports fell after the August 2025 tariff. Brazilian tallow imports declined sharply after the 50% country-specific tariff took effect in August 2025, with imports shifting toward Argentina. Unlike coffee, beef, and fertilizers, Brazilian tallow was not exempted from the additional 40% ad valorem tariff imposed in November.
➤ Tallow imports did not contract meaningfully after tariffs. Tallow functioned as a substitute feedstock during periods of tight UCO supply, and overall tallow import volumes did not contract meaningfully following tariff implementation, with 2025 IEEPA volumes running above 2024 through November.
➤ Aggregate feedstock imports showed diversion more than destruction. Aggregate feedstock imports (UCO, tallow, and canola oil) from IEEPA countries tracked slightly above 2024 levels until October, suggesting the tariffs slowed the pace of imports but did not dramatically reduce overall feedstock volumes. The dominant pattern was trade diversion rather than trade destruction.
➤ Biofuel imports weakened as tax credits changed and tariffs hit. Biodiesel imports collapsed starting January 2025 following the expiration of the $1.00/gallon blender’s tax credit, replaced by the Section 45Z production-only credit that disadvantages imports. Brazilian ethanol imports fell 37%, with non-IEEPA ethanol also declining 24% in the second half of 2025.
➤ New policy changes add headwinds for imported feedstocks. The One Big Beautiful Bill Act’s restriction of the 45Z credit to North American feedstocks, combined with EPA’s proposed 50% RIN discount for foreign feedstocks, adds further headwinds for imported biofuel feedstocks beyond the tariffs themselves.
Recommended Citation: Arita, S., Gammans, M., Kim, J., Steinbach, S., and Zhuang, X. (2026). How IEEPA Tariffs Shaped U.S. Biofuel Feedstock Imports in 2025. NDSU Agricultural Trade Monitor 2026-02. Center for Agricultural Policy and Trade Studies, North Dakota State University. February 2026. https://doi.org/10.22004/ag.econ.393849