President Trump announced a new trade deal with the United Kingdom (UK) today that maintains the current 10 percent tariff on imports from the UK while reducing the tariff on U.S. ethanol from 19 percent to 0.
“Illinois corn farmers are happy that the President and his team are considering corn and corn-based products like ethanol in current trade negotiations. It’s encouraging to see one agreement reached and know that a template exists for future negotiations,” said Garrett Hawkins, President of the IL Corn Growers Association and farmer from Waterloo, IL.
“Farmers and agribusinesses all need the certainty that comes from trade agreements, so we hope that the President pushes for long term agreements that allow us to plan for the future,” Hawkins said.
According to
USDA export data, ethanol exports to the UK are up about 14 percent over the same period last year (September 24 – March 25). Some estimates indicate that the U.S. currently holds a dominant share of the UK fuel ethanol market.
Trade negotiations are being discussed in about 30 countries total, says the administration, including important markets for ethanol like India. The National Corn Growers Association reports that India has an ambitious ethanol blending program, currently at 20 percent of the total fuel supply, which makes it a tremendous opportunity for U.S. ethanol exports.
However, India’s restrictions on genetically modified corn have blocked access for American corn imports, as 94% of American corn is genetically modified. India also imposes technical restrictions that prevent access for distiller dried grains with solubles, a coproduct from ethanol production used in animal feed, and limits U.S. ethanol imports to industrial use only. India’s stance puts U.S farmers at a distinct disadvantage and addressing these barriers would benefit American farmers.
If the Indian government were to drop its restrictions on genetically modified corn, it could open the door to $235 million worth of U.S. exports each year, according to data released by NCGA. If the U.S. were able to supply India’s sustainable aviation fuel market, it would represent $434 million opportunity for U.S. corn farmers in the first year of the relationship.
“We applaud the Trump administration for the trade outreach it is conducting with India, and we will advocate over the next few months to encourage the Office of the U.S. Trade Representative to include American corn exports in any new trade agreement it makes with the country,” said Waterloo, IL farmer and NCGA President Kenneth Hartman Jr. “Building a more level playing field for all American products to access global markets is exactly what corn growers need, especially as we face a projected third consecutive year of negative returns.”
Exports of corn and corn products, including meats, have been a bright spot for farmers in the current market downturn. The
U.S. Department of Agriculture (USDA) published its new monthly export data showing strong exports across corn and corn product segments from September 2024 through March 2025. Year-over-year exports for the September-March period are up 27% for corn. The strong export performance in the first half of the marketing year is positive, but tariffs implemented in April and their associated retaliatory tariffs from foreign buyers may change the future outlook. Recently, some export sales to China of U.S. pork and other commodities were cancelled.
