Fertilizers Exempted from New Tariffs on Canadian Products

This week, potash and other fertilizers will be exempt from new import tariffs on Canadian products.

U.S. President Donald Trump signed three new orders on July 20 under Section 338 of the Tariff Act of 1930, imposing 50% import tariffs on certain Canadian goods. The new tariffs will apply to a range of products, including some goods covered by the United States-Mexico-Canada Agreement.

Fertilizer products such as potash, sulfur, and sulfuric acid are not included in the list of tariff lines covered by the orders.

The Trump administration said it is seeking revisions to the U.S.-Mexico-Canada Agreement, which was negotiated during Trump’s first term. The Office of the U.S. Trade Representative decided on July 1 not to renew the agreement in its current form, meaning the three countries must conduct annual reviews and seek consensus on a long-term extension beyond 2036.

The new Section 338 tariffs will take effect on August 19, 30 days after signing.

U.S. Commerce Department Recommends Keeping Tariffs on Moroccan Phosphate

The U.S. Commerce Department today recommended imposing countervailing duties on phosphate imports from Morocco, despite President Donald Trump’s eight-month suspension of the measure in June.

Based on preliminary findings from a five-year review, the department believes that revoking the countervailing duty order on Moroccan phosphate fertilizer would likely lead to continued subsidization. Today, the department said that if the duty order were revoked, Moroccan producer OCP would likely receive subsidies from Morocco at a rate of 20.04%.

That rate is slightly above the original 19.97% found in the initial investigation, after deducting the now-terminated export tax incentive program, but including new subsidy programs identified in later administrative reviews.

Last month, Trump temporarily suspended countervailing duties on certain Moroccan phosphate fertilizer imports for eight months or until the order is terminated, citing a “supply emergency” for U.S. farmers. Since the suspension, no confirmed sales of Moroccan phosphate to the U.S. have been reported.

Based on today’s recommendation, it remains unclear how OCP will proceed in the U.S. fertilizer market. The Commerce Department found that several Moroccan subsidy programs remain in effect and assumed that the subsidies will continue.

The 20.04% subsidy rate in the department’s report is not considered a new tariff rate, but rather a recommendation for the International Trade Commission to consider.

The review began in early March and involved U.S. fertilizer producers Mosaic and Simplot, the Moroccan government, and OCP. Final results are expected around October 28, 240 days after the review began.

Since 2021, OCP and Russian fertilizer producers have faced countervailing duties on phosphate exports to the U.S., after Mosaic filed petitions alleging that imports from both countries materially injured the U.S. market.

The Commerce Department also recommended continuing countervailing duties on Russian phosphate imports in the final results of the five-year review, saying Russian producers would also continue receiving subsidies.

According to a ruling issued on June 30, the department’s final subsidy rates were 24.11% for Russian producer EuroChem, 14.64% for PhosAgro, and 16.64% for other companies.

The Commerce Department also noted that the Russian review process was accelerated because domestic petitioners Mosaic and Simplot showed sufficient interest, while Russia did not respond or participate in the proceedings.

Many fertilizer traders were not surprised that Russia did not participate in the sunset review, but they remain uncertain about OCP’s next move following the latest ruling.