Due to generous government subsidies, Indonesian biodiesel can be "dumped" on the US market, hence causing market-distorting effects. In 2016, imports of biodiesel from Indonesia were valued at an estimated USD $268 million.

The US Commerce Department determined that exporters from Indonesia have been selling their biodiesel products in the USA at 92.52 - 276.65 percent less than fair value. This finding is much higher than the earlier estimated dumping margin of 50.7 percent.

The ruling is part of US President Donald Trump's "American First" policy, implying a more protectionist approach toward trade. The US Commerce Department initiated 102 anti-dumping and countervailing duty investigations between 20 January 2017 and 20 February 2018, a 96 percent increase from the same period one year earlier. Currently, the USA has implemented a total of 418 anti-dumping and countervailing duty orders in an attempt to protect US companies and industries from unfair trade.

On 6 April 2018 a final ruling is to be determined by the US International Trade Commission (ITC). If the ITC makes an affirmative final injury determination, then the US Commerce Department will issue anti-dumping orders.

Indonesia's Trade Ministry said it plans to challenge the latest US ruling at the World Trade Organization (WTO).