Trump is planning a big change to your gasoline as a boost for one of the states hit hardest by his trade war

  • President Donald Trump is scheduled to visit Council Bluffs, Iowa, on Tuesday.
  • The visit will come after Trump is expected to announce a change to national fuel standards that will give a boost to Iowa corn farmers.
  • The Trump administration will allow the expanded use of E15, a fuel that contains 15% ethanol and 85% gasoline. Currently, most fuel is 10% ethanol and 90% gasoline.
  • The announcement comes as farmers in the state are being battered by the international response to Trump's tariffs.

President Donald Trump is set to try and make an appeal to one of states hardest hit by his administration's tariffs, offering a policy tweak that has long been sought by Iowa's farm industry.

Trump will head Tuesday to Iowa, a state that has been rocked by retaliatory tariffs in response to the US's trade restrictions.

"Will be going to Iowa tonight for Rally, and more!" Trump said. "The Farmers (and all) are very happy with USMCA!"

The "more" could be a reference to a new policy the White House is set to announced by the White House that would provide a boost to Iowa farmers and fulfill a long-time promise from the president.

He is set to unveil an expansion of the use of E15, a fuel mixture made up of 15% ethanol — a corn-based fuel — and 85% gasoline. Currently, the Environmental Protections Agency bans the use of E15 during the summer months due to smog concerns. The changes are expected to lift those bans by summer 2019.

RELATED: Take a look at the products that have been impacted the most by Trump's tariffs on Chinese goods:

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Products directly hit by Trump's tariffs on Chinese goods
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Products directly hit by Trump's tariffs on Chinese goods
Meat: pork; beef intestine; rabbit meat; venison; frog legs
Fish and seafood:live fish including ornamental fish, trout, eels, tuna, and carp; chilled or frozen meat of various types of trout, salmon, halibut, plaice, sole, albacore, tuna, herring, mackerel, cobia, swordfish, pollack, whiting, catfish, rays, and more; various types of salted or smoked fish; other seafood including various types of lobsters, crabs, shrimps, prawns, oysters, scallops, mussels, clams, squid, octopus, conchs, abalone, sea cucumbers, and sea urchins.
Non-meat animal products such as eggs and dairy:Whey products; butter; various types of eggs including chicken; honey; hair of animals including human, hog, horse and badger; animal intestines, bladders; feathers; bones including shells, beaks, corals, hooves, antlers, and more.
Vegetables:onions; garlic; cauliflower and broccoli; cabbage; carrots; turnips; radishes; beats; cucumbers; peas of various types; beans; lentils; celery; mushrooms; peppers of various types; squash; okra; sweet corn; potatoes; sweet potatoes and yams; some types of tomatoes; spinach; Brussels sprouts.
Fruit and Nuts: Coconuts; cashews; almonds; hazelnuts; walnuts; chestnuts; pistachios; macadamia nuts; pecans; dates; figs; pineapples; guavas; oranges; mandarins; clementines; raisins; grapes; apples; pears; quinces; peaches; berries including strawberries, raspberries, cranberries, blueberries and others; bananas; a variety of dried fruits; peels of various fruits.
Cereals: wheat, including durum wheat; barley; oats; corn; various types of rice; grain sorghum; buckwheat; quinoa; and more.
Mill products: flours including those form wheat, corn, buckwheat, rice, rye, other cereals, potatoes, and bananas; groats and meal of various types including wheat, corn, oats, and rice; malt; starches of wheat, corn, potato, and more
Oil seeds: soybeans; seeds of sunflower, flax seed, sesame, mustard, poppy and more; planting seeds for certain crops; cocoas and mint leaves; and seaweeds.
Sugars and candies: cane sugar; candies with no cocoa
Breads and Pasta: uncooked pasta; various breads, pastries, cakes, and biscuits.
Prepared vegetables and fruits: various vegetables and fruits previously listen in their prepared or preserved forms; various fruit jams including strawberry, pineapple, apricot, and more; peanut butter; various fruit juices including orange, pineapple, lime, grape, apple, and more.
Other food items: soy sauce; condiments and seasonings; protein concentrates.
Beverages and vinegars: water, including mineral water; fruit or vegetable juices and juice mixes; beer from malt; wine, including rice wine; ethyl alcohol; vinegars
Food processing waste and animal feed: brans from processing; oil cakes; dog or cat food; animal feed
Tobacco products: various types and preparations of tobacco; tobacco refuse; cigars; cigarettes; smoking tobacco
Salts and minerals: salt/sodium chloride; sulfur; graphite; quartz; types of clays; chalk; slate; marble; granite; sandstone; dolomite; gypsum; some plasters; some types of cement; mica; Epsom salts
Ores, slag, and ash: ores of iron, copper, nickel, cobalt, aluminum, lead, zinc, tin, chromium, tungsten, uranium, titanium, silver, other precious metals, and others; slag, various types of ash.
Mineral fuels and oils: coal; lignite; peat; coke; tars; various types of light oil; various types of kerosene; petroleum oils; liquefied fuels including natural gas, propane, butane, ethylene, and petroleum; oil shale and tar sands
Inorganic Chemicals: chemicals such as chlorine, sulfur; carbon, nitrogen, oxygen, and silicon; acids including sulfuric, nitric, and more; various types of fluorides, chlorides, sulfates, nitrates, carbonates, and more.
Organic chemicals
Fertilizers: animal or vegetable fertilizers; urea; ammonium sulfate; sodium nitrate; and more.
Tanning and drying extracts, dyes, and paints
Essential oils, perfumes: perfume; lip or eye make up preparations; manicure or pedicure products; shampoo; hairspray; bath salts.
Soaps and cleaning products: various types of soap; leather and textile treatments; polishes for shoes and furniture.
Glues, adhesives, and enzymes
Cigarette lighter fluid
Photographic goods: various types of photo plates; instant film; various types of film in rolls; various types of motion picture film.
Various chemical products: pesticides; herbicides; fungicides
Plastics: vinyl flooring and other plastic floor and wall coverings; sausage casings; bags; gloves including baseball gloves; rain jackets; machinery belts.
Rubber: latex; rods, tubes, and other products; conveyor belts; various types of transmission belts; various types of pneumatic tires; gloves; gaskets; dock fenders.
Raw hides and leather: animal skins including cow, buffalo, sheep, goats, reptile; various types of leather made from cow, buffalo, sheep, goats, reptile; leather trunks and suitcases; leather handbags; CD cases; gloves including ski, ice hockey, and typical use; belts; fur clothing, incluidng artificial fur.
Wood: fuel wood; charcoal; various types of wood including oak, beech, maple, ash and cherry; moldings; rods; particleboard; various types of plywood; doors; corks and stoppers; wicker and bamboo baskets.
Wood pulp products
Paper: Newsprint; writing paper; vegetable parchment; carbon paper; self-adhesive paper; cigarette paper; envelopes; tablecloths; handkerchiefs; folders.
Silk
Wool or animal hair products: cashmere; yarns; tapestries and upholstery.
Cotton: fibers; thread; yarn; denim; satin.
Flax: yarn; fabrics
Man-made textiles: polypropylene; rayon; nylon; polyester
Other textile products, rope, twine: hammocks; fish nets; carpets;
Fabrics: corduroy; gauze; terry towel; lace; badges; embroidery
Headgear: caps; hairnets; wool hats; head bands
Stone, plaster, cement, asbestos: stone for art; marble slabs; roofing slate; millstones; sandpaper; floor or wall tiles; cement bricks.
Ceramics: fire bricks; pipes; tiles; porcelain and china.
Glass and glassware: balls; rods; drawn or blown glass; float glass; tempered safety glass; mirrors; carboys, bottles, jars, pots, flasks, and other containers; microscope slides; woven fiberglass
Precious stones and pearls: industrial diamonds; silver and products made of silver; gold and products made of gold; platinum; palladium.
Iron and steel and products derived from the metals:drums; tubes; pipes; doors; windows; screws; horseshoes;
Copper: plates; cables; tubes; pipes; springs
Nickel: bars; rods; wires
Aluminum:powder; cable; wire; screws.
Various metal products, tools, cutlery: industrial items made from lead, zinc, tin, and more; saw blades; bolt cutters; hammers; wrenches; crow bars.
Machinery, both industrial and retail: steam turbines; engines; fuel-injection pumps; air compressors; air conditioning machines; refrigerators; cream separators; hydraulic jacks; escalators; manure spreaders; copiers; automatic beverage-vending machines
Electronics: vacuum cleaners; hair clippers; spark plugs; generators; bicycle lights; electric amps; television cameras; various types of TVs; video projectors.
Vehicles and parts: axles; driving shafts; gear boxes; radiators.
Parachutes

Ships and boats: sailboats; motorboats; canoes; yachts.

Instruments for scientific or medical purposes: microscopes; cameras for non-art purposes; gauges for pressure, electrical currents, and more.
Clocks and watches
Furniture, bedding, mattresses: car seats; wood chairs; furniture designed for offices, kitchens, and more; mattresses; chandeliers; lamps.

Assorted items: buttons; stamps; paintings; collections of zoological, botanical, mineralogical, anatomical, historical, archaeological interest; antiques of an age exceeding one hundred years

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The year-round expansion of E15 use has long been a goal for Midwestern politicians and Iowa's farming industry, particularly Republican Iowa Sens. Chuck Grassley and Joni Ernst. Trump promised to expand the use of E15 during the run-up to the 2016 election.

"He thinks that it's good to have domestically produced energy here and he thinks it will be good for the agriculture industry as well as the economy overall," a senior administration official told reporters Monday.

The move will set off a fight with the oil industry, which opposes the shift to a higher percentage of biofuels, and could prompt backlash from oil-state politicians such as GOP Sens. Ted Cruz and John Cornyn. The oil industry argues that higher levels of ethanol can be harmful to car engines, despite the EPA approving the use of E15 in all light-duty cars since 2001.

In an attempt to assuage the industry, the Trump administration is also proposing changes to a system of credits that allow oil refiners to get around certain ethanol obligations.

While the move is a big win for farmers in the Midwest, it may also be timed as an effort to soften the blow from Trump's intensifying trade war with China and other nations. Iowa, in particular, is expected to take a significant hit from the trade disputes.

According to the Center of Agriculture and Rural Development at Iowa State University, Iowa's gross state product could take a $1 billion to $2 billion hit from Trump's trade fights. Similarly, the US Chamber of Commerce estimated that $1.4 billion worth of exports from Iowa are currently subject to retaliatory tariffs from China, Canada, Mexico, and the European Union.

The use of ethanol to counteract some of the trade war damage follows other efforts from the Trump administration to soften the tariffs' blow on US farmers. The US Department of Agriculture is handing out $4.7 billion in aid to farmers in one of those moves.

It also carries a political benefit for the GOP, which is fighting to keep the governor's mansion in Iowa. According to the Real Clear Politics average of recent polls, Democratic challenger Fred Hubbell is up 3.5 percentage points on Republican incumbent Kim Reynolds, who took over as governor in 2017 after Terry Branstad become Trump's ambassador to China.

Also, GOP Rep. David Young, the current representative in Iowa's 3rd district, is facing a tough challenge from Democrat Cindy Axne. The third district includes Council Bluffs, the site of Trump's Tuesday rally.

SEE ALSO: Trump's favorite report card for the trade war keeps getting uglier

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