US, EU agree to trade deal that could boost ethanol exports
President Trump announced a trade deal with the EU including \$750 billion in U.S. energy exports, with ethanol as a key component. In 2024, the U.S. exported 194 million gallons of ethanol to the EU. Industry leaders praised the deal, citing potential for expanded trade and rural economic benefits.
President Donald Trump on July 27 announced the U.S. has reached a trade deal with the European Union that includes a provision indicating the EU will purchase $750 billion in U.S. energy exports.
In a statement posted to X, Agriculture Secretary Brook Rollins confirmed that the $750 million in EU energy purchases includes U.S. ethanol.
The 27 EU member countries currently include Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
According to data published by the USDA, approximately 10% of U.S. ethanol exports were destined for the EU last year. In terms of volume, the USDA reported that the U.S. exported approximately 194 million gallons of ethanol to the EU in 2024 at a value of $419.91 million, up from 128 million gallons at a value of $333.36 million in 2023.
“We thank President Donald Trump and European Commission President Ursula von der Leyen for reaching this important agreement over the weekend, and we are encouraged to see U.S. ethanol mentioned as part of the deal,” said Geoff Cooper, president and CEO of the Renewable Fuels Association, commenting on a social media post by USDA Secretary Brooke Rollins, who noted that the deal includes the purchase of $750 billion in U.S. energy, including ethanol, and would reduce America’s $24 billion agriculture trade deficit with the EU.
“As our nation’s corn growers prepare for what is likely to be a record harvest, we stand ready to produce larger volumes of cleaner-burning ethanol and valuable co-products like distillers grains for customers around the world,” Cooper added. “When markets are open and trade policies are fair, everybody wins. The U.S. ethanol industry looks forward to working with our partners in Europe to continue growing the global production and use of renewable fuels, which are simply more reliable and more affordable than many other energy alternatives.”
“This is yet another example of this Administration’s commitment to American energy dominance, and we applaud President Trump, USDA Secretary Brooke Rollins, and U.S. Trade Representative Jamieson Greer for putting rural America first in their trade negotiations,” said Emily Skor, CEO of Growth Energy. “This latest trade deal with the EU will deliver concrete benefits to the American ethanol industry and to the rural communities it supports. It has the potential to unleash a new era of transatlantic trade partnerships and to enhance what’s already one of the ethanol industry’s strongest trade relationships. We look forward to learning more details about how this agreement addresses the tariff and non-tariff trade barriers that will allow the U.S. ethanol industry to build on the $420 million we exported to the EU in 2024.”
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Source : Ethanol Producer Magazine
