Key facts
- Commerce recommended maintaining countervailing duties on Moroccan phosphate imports.
- Moroccan producer OCP would likely receive subsidies at a rate of 20.04% if duties were revoked.
- President Trump had temporarily suspended these duties for eight months in June.
- New tariffs on certain Canadian goods will take effect August 19.
- Fertilizer products like potash and sulfur are exempt from the new Canadian tariffs.
The U.S. Department of Commerce has recommended maintaining countervailing duties on Moroccan phosphate fertilizer imports, according to preliminary results of its five-year review. This recommendation comes despite President Donald Trump's temporary suspension of these duties for eight months in June, which was cited as a "supply emergency" for U.S. farmers.
Commerce determined that revoking the countervailing duty order would likely result in the continuation of subsidies for Moroccan producer OCP, estimating a subsidy level of 20.04%. This rate incorporates new subsidy programs found in later administrative reviews, alongside the original investigation rate, minus a terminated export-tax incentive program.
There have been no confirmed sales of Moroccan phosphate to the U.S. since Trump's suspension, leaving OCP's future participation in the U.S. market uncertain. Commerce found that several Moroccan subsidy programs remain active and assumes these subsidies will continue.
The review, which began in March, involved U.S. fertilizer producers Mosaic and Simplot, the Moroccan government, and OCP. The final results are anticipated around October 28.
OCP and Russian fertilizer producers have been subject to U.S. countervailing duties since 2021, following a petition by Mosaic alleging material injury to the U.S. market. Commerce also recommended that duties remain on Russian phosphate fertilizer imports, citing ongoing countervailable subsidies. Final rates for Russian producers include 24.11% for EuroChem, 14.64% for PhosAgro, and 16.64% for others.
Separately, President Trump signed three new orders this week to add a 50% import tariff on certain Canadian goods, effective August 19. However, fertilizer products such as potash, sulfur, and sulfuric acid were excluded from these new tariffs, despite some being covered under the USMCA trade agreement. The Trump administration stated it seeks to revise the USMCA, which was negotiated during Trump's first term.