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U.S. Working On Lowering China's Ethanol Tariff

Market demand will boom as China introduces E10

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Tom DiChristopher reported on U.S. efforts to reduce the Chinese Tariff on ethanol for CNBC. China will be introducing E10 to its fuel supply next, and demand is expected to increase sevenfold. China currently only purchases 4% of U.S. ethanol exports due to a 45% tariff placed on the product.

China plans on introducing E10 next year, and American suppliers could be posed to take advantage of this new market if the tariff could be lowered. China will need to source 15 million tons of ethanol to meet the demand E10 will create, seven times more then it needs today. The USDA is active in negotiations to lower the tariff, but they are still unable to determine how willing the Chinese government is to act.

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