Reuters shares insight into how U.S. ethanol reaches China tariff-free

Reuters documented the tortuous journey of U.S. ethanol shipments via Southeast Asia to China – an apparent attempt to avoid tariffs on U.S. ethanol imposed by Beijing in retaliation for U.S. duties on Chinese imports. Despite retaliatory tariffs of up to 70 percent on U.S. ethanol shipments, the fuel can still legally enter China tariff-free if it arrives blended with at least 40 percent Asian-produced fuel according to local trade rules.