The victory of Trump and the Republicans in the US elections could negatively affect the biodiesel market, especially in the EU

It is known that President Trump does not believe in the theory of global warming and the need to reduce oil consumption. Therefore, after his victory in the elections, as well as the Republicans obtaining a majority in the US Senate, biofuel support programs in the country may be reduced. In addition, Trump plans to introduce a tariff on imports of goods from the EU, which will further increase the pressure on the prices of fuel that Europe supplies to the United States.

The US has been heavily importing biodiesel in recent months, with supplies expected to double starting in 2022. Most of the biofuel was purchased from the EU, thanks to attractive prices. Germany produces much more biodiesel than any other country in the EU, so it is very important for it to supply biofuels to the US. Thus, in February 2024, Germany provided 58% of the biodiesel imported to the United States, although later the volume of deliveries decreased.

Despite active imports and increased competition from renewable fuels, biodiesel production in the US in 2023 grew by 5% compared to the previous year to 5.6 million tons, and its consumption became the largest since 2017.

However, the US Energy Information Administration expects US biodiesel production to decline in 2024.