Fertilizer Tariffs Suspended
Trump Lifts Moroccan Phosphate Fertilizer Duties Temporarily Amid U.S. Food Supply Emergency
Anonymous
Key Points
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Tariffs on Moroccan phosphate were originally imposed in March 2021 after a petition by U.S. producer The Mosaic Company, setting duties at about 16–17% before the suspension.
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The emergency proclamation authorizes a temporary duty-free importation of phosphate fertilizer from Morocco for up to eight months or until the emergency ends, using executive powers.
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Geopolitical conflicts, including those in the Middle East, have disrupted fertilizer supply routes and contributed to ongoing shortages affecting U.S. farmers.
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The White House notes that the largest foreign source of phosphate fertilizer has experienced supply chain disruption, underscoring the need for diversification of sources.
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More than half of annual phosphate fertilizer use occurs between fall and very early spring, making timely and reliable access essential to meet the upcoming planting season.
President Trump declared a national emergency over the U.S. food supply on June 29 and immediately suspended anti-dumping and countervailing duties on Moroccan phosphate fertilizer for up to eight months. Fox Business reported the move eliminates tariffs of roughly 16.8% to 19.97% that had been in place since 2021, aiming to cut input costs for American farmers before the fall planting season.
The decision hinges on Morocco's unique position in global markets. The country controls roughly 70% of the world's phosphate rock reserves, according to Crypto Briefing, and its state-run OCP Group is the largest phosphate producer on Earth. With Middle Eastern supply routes disrupted by the ongoing conflict with Iran, Morocco is now the only supplier capable of filling the gap at scale.
Iran War Shut Down the World's Key Fertilizer Routes
The crisis stems from the U.S.-Israel war with Iran, which led to the closure of the Strait of Hormuz. That closure trapped Saudi Arabian phosphate cargoes and sent prices for key raw inputs — sulfur and ammonia — soaring. Fresno Bee reported that the disruption left domestic supply "insufficient to support domestic agricultural food production," forcing the White House to look elsewhere fast.
Timing made the shortage urgent. More than half of annual phosphate fertilizer use happens between fall and early spring. Missing that window means missed planting seasons and higher food prices. The White House said the eight-month suspension is designed as a bridge while the U.S. expands its own production capacity under the Defense Production Act.
Farmers Had Paid a Heavy Price Since 2021 Tariffs Hit
The 2021 duties were imposed after The Mosaic Company petitioned the U.S. government, claiming Morocco's OCP received unfair state subsidies. Mosaic won. But American farmers paid. A Texas A&M study estimated the duties added $6.9 billion in costs to U.S. farmers between 2021 and 2025. Prices for diammonium phosphate (DAP) — the most common phosphate fertilizer — rose 28.6% as a direct result, according to Agri-Pulse.
By June 2026, 65 agricultural groups had sent an urgent letter to Commerce Secretary Howard Lutnick. They warned of "family farm collapse" if relief did not come. Jed Bower, president of the National Corn Growers Association, welcomed the suspension. "Input prices generally have been incredibly high," he said. "This is welcome news for corn farmers."
Trump Used Emergency Powers to Bypass Normal Trade Process
Normally, countervailing duties — penalties on subsidized foreign imports — can only be lifted through a lengthy legal process run by the International Trade Commission. Trump bypassed that process entirely by invoking a national emergency. Middle East Online noted the White House is also working with the private sector to boost domestic manufacturing. The proclamation states the goal is to "mitigate any significant risks to the domestic food supply."
Some trade analysts called the move legally bold. The ITC had just opened a five-year "sunset review" of the duties on June 20 — a standard check on whether keeping them still makes sense. By declaring an emergency, Trump effectively jumped ahead of that review. Domestic producer Mosaic has not moved to block the order but has argued in the past that removing duties props up "a foreign state-owned monopoly."
Farmers Get Relief, but Domestic Producers Face New Pressure
For farmers, the math is straightforward. The USDA estimates average savings of $1.82 per acre for the upcoming season. The American Soybean Association called it "much-needed relief" after four consecutive years of potential losses. Charlotte Observer reported the suspension is part of a broader effort to address fertilizer shortages that have strained supply chains globally.
For Mosaic, the calculus is harder. The company spent years fighting for those duties and won. Now they are paused by executive order. The eight-month window gives the administration time to expand U.S. phosphate production under the Defense Production Act — but critics warn that deadline is tight and that Mosaic could face lasting damage if Moroccan imports flood back into the market at lower prices.
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