UK Dropped Anti-Subsidy Duties on US HVO Imports
Secretary of State Jonathan Reynolds ruled that imposing new tariffs on US biodiesel imports was not in the public interest.
Updated on Sept. 25, 2026 in International Trade
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Secretary of State Jonathan Reynolds has decided against implementing anti-subsidy duties on hydrotreated vegetable oil (HVO) imports from the United States. This decision overrides a recommendation from the Trade Remedies Authority to impose tariffs of approximately £260 per tonne.
Why it matters
The choice reflects a broader weighing of national economic priorities, as officials determined that the proposed trade remedies failed to serve the wider public interest. Industry groups warn that the lack of protection could destabilize the domestic biodiesel sector.
The Trade Remedies Authority recommended an anti-subsidy duty of approximately £260 per tonne on US HVO imports. This figure was calculated following a formal investigation that confirmed imports were subsidized and injurious to the UK market.
The players
Jonathan Reynolds
Jonathan Reynolds is the Secretary of State who holds the authority to approve or reject recommendations for new trade remedies based on economic interest assessments.
Trade Remedies Authority
The Trade Remedies Authority is the government body responsible for investigating allegations of subsidized imports and recommending protective trade measures.
Renewable Transport Fuel Association
The Renewable Transport Fuel Association is an industry organization that advocates for domestic producers and has raised concerns regarding the potential impact of import policies on industrial employment.
The details
The Trade Remedies Authority concluded that subsidized US HVO imports negatively impacted the UK domestic biodiesel industry, initially prompting the call for protective tariffs. However, Jonathan Reynolds utilized an Economic Interest Test to determine that these remedies were not appropriate, effectively allowing the imports to continue without the proposed financial penalties.
Timeline
September 25, 2026: Official publication regarding the government's decision on trade remedies for US HVO imports.
Market Dynamics
This decision follows the protocols of the UK's Economic Interest Test for trade remedies, which allows ministers to prioritize broader economic health over specific industry protection. It highlights the tension between protecting domestic manufacturing and maintaining cost-effective energy imports.
Investors and stakeholders in the UK biodiesel sector may face continued competitive pressure from US imports due to the absence of new tariffs. The decision provides clarity for importers and distributors who rely on US-sourced HVO to maintain supply chain volume and pricing.
The takeaway
The government's decision signals a preference for maintaining current import levels despite findings of injury to the domestic biodiesel industry. Stakeholders should monitor future trade reviews to see if market conditions shift the government's current economic interest calculation.
Further reading
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