US President Donald Trump has announced that he will temporarily suspend countervailing duties on certain phosphate fertilizer imports into the US from Morocco for eight months, having cited a ‘supply emergency’ for US farmers, as revealed by Argus Media.
Under the proclamation, anti-dumping and countervailing duties issued against certain phosphate fertilizers from Morocco will be suspended for eight months, or until the emergency order is terminated, depending on which occurs first.
Global supply chains for phosphate fertilizers and fertilizer inputs have been disrupted by conflicts in fertilizer-producing regions, and trade actions taken by major fertilizer-producing regions, a fact sheet related to the proclamation said. This would include the US-Israel war with Iran, which had largely stopped traffic through the Strait of Hormuz, trapping Saudi Arabian phosphate cargoes, while sending raw material costs such as sulfur and ammonia, significantly higher.
Even with more Saudi Arabian phosphates cargoes moving through the strait, none of those vessels are enroute to the US, according to vessel tracking data.
The countervailing duties imposed on Morocco have been under a five-year sunset review by the US Department of Commerce (DoC) since early March, with the DoC earlier in June announcing it would be extending the deadline for a preliminary decision until 20 July.
Moroccan fertilizer producer OCP and Russian fertilizer producers have been subject to countervailing duties on phosphate exports to the US since 2021, after US fertilizer producer Mosaic filed a petition with authorities alleging the two countries' phosphate imports materially injured the US market.
It is unclear if the DoC was aware of the Trump Administration's emergency proclamation ahead of time.
The circumstances related to fertilizer supply emergency will be monitored, according to the White House, with further action possible.
Original article written by Taylor Zavala on Argus Media.