The United States Trade Representative (USTR), early Tuesday, flagged India’s ban on US ethanol imports as one of several “unfair trade practices” affecting American exporters, as trade tensions between Washington and key partners continue to rise.
In its 2025 National Trade Estimate Report, the USTR listed 10 major trade barriers imposed by key trading partners, including India, China, Japan, the European Union, and others.
These practices, the USTR claims, distort trade and hurt American manufacturers, exporters, and workers.
A post by the USTR on X stressed the need for fair access, stating, “India bans imports of U.S. ethanol for fuel use. Similarly, Thailand restricts imports of fuel ethanol... Securing market access... would result in significant export gains.”
According to the USTR, opening the Indian and Thai markets to U.S. ethanol could result in at least $414 million in additional annual export value.
The Indian government has continued to push for higher ethanol blending targets domestically.
India currently does not allow fuel ethanol imports and also mandates licensing for ethanol imports for non-fuel purposes under restrictions set by the Directorate General of Foreign Trade (DGFT). The Commerce Ministry has required licenses for biofuels under various Harmonized System (HS) codes since May 2019, limiting imports to actual users.
On March 20, Minister of State for Petroleum Suresh Gopi informed Parliament that India aims to achieve 20% ethanol blending in petrol by 2030. According to government data, public sector oil companies have steadily increased blending from 10% in 2022 to nearly 18% by February 2025.
Meanwhile, External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio held a call on Monday to discuss the evolving trade relationship following President Trump’s recent announcement of a blanket 10% tariff on all imports to the US, with a higher 26% tariff specifically on Indian imports. The move has rattled global markets and drawn criticism from some US allies.
Apart from India’s ethanol restrictions, the list includes China’s dominance in the low-cost American flag market - where over 100,000 Chinese-made flags are sold each month via a single e-commerce platform - resulting in $2 million in losses and domestic job cuts.
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