White House lifts duties on some phosphate imports; price outlook uncertain

After months of urging the White House to lift countervailing duties on phosphate imports, farm organizations were able to celebrate a long-delayed victory. President Donald Trump temporarily suspended duties on Moroccan phosphate Iune 29 through an executive order.

The order, which lasts for at least eight months, directs the Treasury and Commerce departments to use their authority under the Tariff Act of 1930 to suspend the nearly 20% countervailing duties, which had been requested by United States phosphate manufacturers Mosaic and Simplot.

Nutrien announced in March that the company supported removing the duties.

“Based on evolving global phosphate supply and demand dynamics since 2021, we believe removing countervailing duties on phosphate imports would be a constructive step that supports U.S. farmer economics, balanced fertilizer application and agricultural productivity,” a Nutrien spokesperson told Agri-Pulse.

Nutrien, based in Saskatchewan, Canada, produces 20% of the U.S.’ phosphate fertilizer output through two production facilities in Aurora, North Carolina, and White Springs, Florida. It has been one of the main beneficiaries from the countervailing duties, which have been in place since 2021.

The Commerce Department recently announced a review of the duties.

Farmers thank Trump

“This action provides much-needed relief to soybean farmers and other agricultural producers who continue to face tight margins and high input costs,” a statement from the American Soybean Association said.

“Fertilizer is one of the most significant expenses soybean farmers face each year,” said ASA President Scott Metzger, an Ohio soybean farmer. “Suspending import taxes on this critical farm resource will improve fertilizer availability and help reduce input costs at a time when farmers begin to plan for the 2027 crop while tackling increasingly challenging financial decisions. U.S. soybean farmers thank President Trump and his administration for recognizing the challenges facing America’s farmers, identifying targeted solutions to defray farm production costs, and taking meaningful action that will strengthen the agricultural economy.”

National Corn Growers Association President Jed Bower called the announcement “welcome news for corn farmers.”

“Fertilizer represents one of the biggest expenses for farms every year, only made worse in recent years by actions of companies looking to further consolidate their control of the market,” Bower said. “Input prices generally have been incredibly high and are a major contributing factor to the profitability picture, or lack thereof, for corn farmers right now.”

Facing spiraling fertilizer prices due to the war with Iran, dozens of farm groups called for an end to the duties June 1, releasing an analysis that concluded the countervailing duties on Moroccan phosphate “raised input costs for farmers of corn, soybeans, wheat, rice, sorghum, and cotton by roughly $6.9 billion over the 2021 through 2025 growing seasons. At its full initial rate of 19.97%, the duty drove up the U.S. price of diammonium phosphate by an estimated 28.6%.”

“To ensure a stable food supply, predictable and timely sources of phosphate fertilizer must be procured to meet United States demand, which requires adequate supply of phosphate fertilizer, a critical type of plant food,” the order says.

Why now?

The executive order came just days after President Trump invited agricultural leaders to the White House Rose Garden for dinner where he signed another executive order promoting regenerative agriculture.  That’s prompted at least one analyst to wonder why he waited so long to lift the duties on Moroccan phosphate.

Josh Linville, vice president for fertilizer at StoneX, wrote in an update that he has “a lot of mixed feelings” about the White House order.

 On one hand, he said he was “thrilled that this is a step forward for free trade markets” and could “help to return one of our recent historical suppliers of phosphate.”

“U.S./North American farmers have been suffering from a lack of phosphate import options.  China hasn’t been exporting. Morocco/Russia were blocked.  Saudi Arabia was stuck behind the Strait of Hormuz.  That was most of the world’s players,” he wrote.

On the other hand, Linville noted, “I’m bitter at the fact that he is just doing this.  If he had this capacity, why is he waiting until today to do it?  Why not last summer when North American phosphate values were some of the highest in the world due to a lack of supply?  Why not this last winter in the lead up to spring season?  Why today?”

Linville noted that he’s cautious about the outcome on prices for this fall.  “The market expectation is that values will fall. I hope that is what happens.”  However, he added that“NOLA DAP is already the cheapest major price point in the world.”

The U.S. Department of Agriculture is bullish that prices will drop, according to a release following the president’s order.

USDA’s analysis of the decision indicates “American farmers could save approximately $1.82 billion annually through lower phosphate fertilizer costs as additional supplies enter the U.S. market. The action is expected to reduce phosphate fertilizer prices by approximately 22%, benefiting more than 100,000 farms across 97 million planted acres nationwide.”

Editor’s note: Sara Wyant is publisher of Agri-Pulse Communications Inc., www.Agri-Pulse.com.