Trump's Feud with China's Used Cooking Oil
China's exports of used cooking oil to the US were already declining long before President Donald Trump singled them out as the latest flashpoint in his trade war with Beijing.
Trump has cast cooking oil purchases as a potential weapon to counter China's refusal to buy US soybeans. Used cooking oil is a common feedstock for biofuel production. However, soybeans remain a far more valuable commodity.
After reaching a record 1.27 million tons worth $1.2 billion in 2024, Chinese sales of refined cooking oil to the US, including used cooking oil, plummeted this year after Beijing canceled export tax breaks starting December 1. During the first seven months of the year, sales reached about 387,000 tons, 43% below the previous year's rate, according to the US Department of Agriculture. By comparison, China's soybean purchases from the US last year totaled about $12.6 billion.
However, the United States remained China's top destination for crude palm oil (CPO) in 2024, accounting for about 43% of its total exports, according to the USDA. (asd)
Source: Bloomberg
