Key facts
- President Donald Trump is temporarily suspending countervailing duties on certain phosphate fertilizer imports from Morocco for eight months.
- The suspension is attributed to a "supply emergency" for U.S. farmers.
- Global supply chains for phosphate fertilizers have been disrupted by conflicts and trade actions.
- The U.S. Department of Commerce had been reviewing these duties, imposed in 2021, since March.
- The White House is monitoring the situation and may take further action.
U.S. President Donald Trump announced late Monday he will temporarily suspend countervailing duties on certain phosphate fertilizer imports from Morocco for eight months, citing a "supply emergency" for U.S. farmers. The proclamation states that 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, whichever occurs first.
Global supply chains for phosphate fertilizers and their inputs have been disrupted by conflicts in fertilizer-producing regions and trade actions, according to a fact sheet related to the proclamation. The U.S.-Israel war with Iran, which largely stopped traffic through the Strait of Hormuz, trapped Saudi Arabian phosphate cargoes and significantly increased raw material costs for sulfur and ammonia. Despite recent increases in Saudi Arabian phosphate cargoes moving through the strait, none are currently en route to the U.S., according to vessel tracking data.
The countervailing duties imposed on Morocco have been under a five-year sunset review by the Department of Commerce since early March. Commerce extended the deadline for a preliminary decision until July 20. Moroccan fertilizer producer OCP and Russian fertilizer producers have been subject to countervailing duties on phosphate exports to the U.S. since 2021, after U.S. fertilizer producer Mosaic filed a petition alleging material injury to the U.S. market.
It is unclear if the Department of Commerce was aware of the administration's emergency proclamation in advance. The White House stated that circumstances related to the fertilizer supply emergency will be monitored, with further action possible.