China’s UCO exports to US plunge amid new tariffs

China’s exports of used cooking oil (UCO) to the United States — its largest market — are expected to plummet in the coming months, following the imposition of steep new tariffs.
As a result, Chinese exporters are redirecting shipments to Europe and emerging markets across Asia, according to industry sources.
Beginning this month, the US has implemented a 125% import tariff on Chinese UCO, a move that has already halted most shipments.
China exported a record 3 million metric tons of UCO last year, according to Chinese customs data.
“For now, US arbitrage is shut, and we expect it to stay that way in the medium term,” said Richard Dickinson, head of trading at Shanghai-based Amarus Trading, one of the largest players in the Chinese UCO market.
“Some volumes are being redirected to Europe, as well as to new markets in Asia, including South Korea, Thailand, Malaysia and India.”
Industry sources noted that at least four new Sustainable Aviation Fuel (SAF) plants — relying on UCO as a key feedstock — have recently launched or will come online this year in Thailand, Malaysia and Japan, with a combined annual capacity of over 700,000 metric tons.
UCO exports to the US had already begun to decline late last year after Beijing scrapped export tax rebates and the US introduced a new clean fuel tax credit structure that disincentivises imports.
The newly imposed tariffs have only accelerated the drop, a fuel shipping company representative said.