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"Although China slapped retaliatory tariffs up to 70 percent on U.S. ethanol shipments, the fuel can still legally enter China tariff-free if it arrives blended with at least 40 percent Asian-produced fuel"

Right, so the American producers can still sell tariff-free to China provided that they sell 40% less volume with increased costs. Nice loophole...

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Where does it say they sell 40% less volume? Under this scheme, the amount of US ethanol that can get in tariff-free is limited to two-thirds of the total Asian ethanol production. Does the US export that much anyway?

Well it says that it must be mixed with 40% of Asian ethanol.

Let's say you're an American company and you have a contract to supply 1 million litres to a Chinese customer. If you want to avoid tariffs you now have to use only 600,000 litres of American ethanol where you would have used 1 million before.

It may not end up that much a drop in the end, but it clearly encourages to use less American ethanol.

Read between the line or shipping, “less formal or declared American ethanol”

I’m on mobile so I can’t investigate further. Here’s a helpful link. 1.4 billion gallons in 2017 with most making it to Brazil and Canada.

https://www.eia.gov/todayinenergy/detail.php?id=35972

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