North American biofuels are wrestling with uncertainty due to tariff talks

An energy expert tells Reuters he expects the North American biofuels industry to contract if the uncertainty of tariffs continues to drag on.

Paul Niznik is the Director of Energy at Capstone LLC, he says that while he expects the industry to contract, it will not disappear entirely. He says that tariff unknowns have left little room for prices to catch up, but tariffs are not the industry’s only concerns.

A lack of 45Z tax credit guidance continues to impact the industry.

Brazil’s ethanol industry also faces some tough choices as tariffs loom.

To avoid reciprocal duties from teh U.S., Brazil would have to lower its 18% duty on American ethanol, and while ithis would allow Brazil to keep the U.S. as a key export market, opening itself up to U.S. ethanol would hurt its local industry.

Brazil shipped nearly 300 million liters of ethanol to the U.S. last year.

Related Stories
As the White House works to close the trade gap, patience is wearing thin for some lawmakers. Senator Chuck Grassley (R-IA) says farmers are getting backed into a corner.
The Consumer Price Index rose 0.4 percent in August, led by higher shelter, food, and gasoline prices. Year over year, inflation is up 2.9 percent.
The Cotton Jassid previously detected in Georgia has now made its way to the Lone Star State.
RealAg Radio host Sean Haney joins us for a Canadian perspective on President Trump’s controversial tariff rollout, lower court rulings, and upcoming review by the U.S. Supreme Court.
The Interior Department is proposing to repeal the Bureau of Land Management’s Public Lands Rule. This move would make huge strides to empower local decision-making and restore balance between conservation and protecting rural livelihoods tied to these public lands.