AsianFin -- China is redirecting its used cooking oil (UCO) exports to Europe and emerging Asian markets as steep U.S. tariffs effectively shut down trade with its biggest buyer, industry sources say.

Starting this month, the Trump administration has imposed a 125% import tariff on Chinese UCO, pushing shipments—worth $1.1 billion last year—into sharp decline. The last cargoes bound for the U.S. departed in late March and early April, according to three China-based traders, with exports expected to halt entirely in the near term.

China exported a record 3 million metric tons of UCO in 2024, valued at $2.64 billion, customs data show.

“With the U.S. arbitrage window closed, we expect that to remain the case for the medium term,” said Richard Dickinson, head of trading at Shanghai-based Amarus Trading, one of China’s largest UCO dealers. “Exports are being redirected to Europe and developing markets across Asia, including Korea, Thailand, Malaysia, and India.”

The shift underscores the mounting ripple effects of Washington’s tariff campaign on China’s biofuel supply chain.