Certain fertilizer importers to face higher US tariffs
Published by Oliver Kleinschmidt,
Deputy Editor
World Fertilizer,
US President Donald Trump has released a new wave of tariff rates, most fertilizer origin countries had their rates increase to 15% from the prior 10% imposed in April, including Trinidad and Tobago, Nigeria, Israel and Jordan, among others, as researched by Argus Media.
Some countries saw rates set above 15%, like key urea supplier Algeria, which now faces a 30% tariff. But countries not detailed in Annex I of the order will continue to face a 10% levy, notably Arab Gulf nations like Saudi Arabia and Qatar. That should also maintain Russia's current tariff-exempt status.
Goods that are loaded onto ships before 7 August and enter the US before 5 October will not be subject to the new tariffs, the Trump administration has said.
The executive order did not outline any adjustment to product exemptions under the tariff rates, meaning fertilizers like potash (MOP, SOP, and NOP) and NPKs, among others, will likely remain tariff-free.
Exemptions for US-Mexico-Canada Agreement (USMCA) compliant goods remain in place for both countries, consistent with negotiated deals from early April. The exemptions include most fertilizers such as nitrogen and potash, as well as related products. Sulfur, sulfuric acid and ammonia are also considered USMCA compliant, though some uncertainty remains related to whether phosphates produced in Mexico are exempt because of the origin of the products' inputs.
Tariffs on non-USMCA compliant Mexican goods were unchanged at 25% following a 90-day extension on 31 July and levies on imports from Canada that are not USMCA compliant rose to 35% on 1 August.
New tariffs met with limited price response
Market reactions to the tariff announcement this week have been subdued so far, and the tariffs' impact will largely be relegated to nitrogen and phosphate markets.
New Orleans (Nola) urea barges traded sideways the morning after the executive order was issued as liquidity picked up in the market. At least 15 000st September delivering barges at Nola traded from US$460 - 462/st fob. An August barge changed hands at US$458/st fob, in line with Argus' daily urea assessment on 31 July. Meanwhile, a September DAP barge traded at US$805/st fob Nola, equal to September barges earlier in the week.
Most nitrogen exporters issued higher tariffs were already choosing not to ship product to the US because of the 10% tariff imposed in April and tightness in global markets. Still, one exception is Trinidad & Tobago, which has continued to ship UAN and ammonia to the US. The 5% increase in the island nation's rate could cause sellers to divert more supplies away from the US.
For phosphate, nearly all offshore suppliers issued a tariff in early April chose to deter product from US shores, causing severe supply tightness in the domestic market. Major DAP and MAP global producers have chosen to send product elsewhere and see the tariff uncertainty as too sensitive to tangle with.
Nitrogen imports consumed for the fall application season will likely be unaffected by the additional levies because of the grace period for goods entering the US before 7 October.
The new tariffs will become more meaningful if they remain in place leading up to the spring season. Fertilizer imports ramp up through the winter and into spring, requiring distributors to pull on volumes from a wider array of countries, including several now facing higher levies.
Find the original article on Argus Media.
Read the article online at: https://www.worldfertilizer.com/phosphates/05082025/certain-fertilizer-importers-to-face-higher-us-tariffs/