After years of pressure from corn growers and other farm groups who argued phosphate fertilizer tariffs have added billions of dollars to production costs, the Trump administration is temporarily suspending duties on phosphate fertilizer imports from Morocco.
President Donald Trump on Monday declared a national emergency over fertilizer supplies and signed a proclamation allowing phosphate fertilizers from Morocco to enter the United States free of duties and estimated duty deposits for up to eight months, or until the declared emergency ends. The White House says the Executive Order is aimed at helping ensure an adequate supply of phosphate fertilizer for American Farmers.
The move follows years of lobbying by agricultural organizations seeking relief from countervailing duties first imposed in 2021. Earlier this year, more than 50 state grower organizations, including the Texas Corn Producers Association, urged the U.S. Department of Commerce and the International Trade Commission (ITC) to revoke the duties as part of the required five-year sunset review.
Their argument has centered on rising fertilizer costs. A study by the Texas A&M AgriLife Food and Agricultural Policy Center estimated the countervailing duties increased the price of diammonium phosphate (DAP) fertilizer by nearly 29% during the period the full duty was in effect and added an estimated $6.9 billion in phosphorus fertilizer costs for U.S. producers of corn, wheat, soybeans, rice and other program crops between the 2021 and 2025 growing seasons.
Texas corn producer Dee Vaughan says the executive order marks the culmination of years of grower advocacy on fertilizer costs and trade barriers.
“Well, when we got the word yesterday afternoon, we were absolutely thrilled,” Vaughan says. “This is an effort that’s been ongoing for over a year to draw attention and educate everyone about the importance of eliminating this CVD that was put on during the Biden administration on phosphate fertilizer coming out of Morocco.”
The executive order signed on Monday does the following:
- Declares an emergency over threats to adequate fertilizer supply for U.S. agriculture
- Temporarily suspends certain anti-dumping and countervailing duties on phosphate fertilizer imports from Morocco
- Allows duty-free importation of Moroccan phosphate fertilizer for up to eight months, or until the emergency is terminated
- Directs federal agencies to implement the suspension and monitor fertilizer supply conditions during the relief period
- Aims to improve near-term fertilizer availability heading into upcoming application seasons while longer-term domestic production efforts continue
USDA Says Action Will Provide “Immediate Relief”
USDA says the temporary suspension of countervailing duties on certain phosphate fertilizer imports could provide significant savings for U.S. farmers if additional supplies enter the domestic market.
According to USDA, the action is expected to increase phosphate fertilizer availability, improve competition and lower one of agriculture’s largest production expenses ahead of future planting seasons.
The department estimates farmers could save approximately $1.82 billion annually through lower phosphate fertilizer costs, with phosphate prices declining by about 22% as additional imports reach the U.S. market. USDA says more than 100,000 farms across 97 million planted acres could benefit from the lower costs.
“Today’s announcement will bring immediate relief to producers who rely on these critical inputs with an estimated 22 percent reduction in phosphate fertilizer prices, and $1.82 billion in annual savings for producers. President Trump will always put farmers first, and he will continue to fight for those that feed, fuel, and clothe our nation, said U.S. Secretary of Agriculture Brooke L. Rollins in a press release Monday night.
USDA says in addition to “providing immediate relief” through increased fertilizer availability, USDA is also working to boost long-term domestic fertilizer production and reduce America’s reliance on foreign fertilizer sources.
“President Trump’s action today will provide immediate relief as well as a stable source of supply for American producers as they enter fall application season,” said Deputy Secretary Stephen Vaden. “The Department will continue to support initiatives to secure American farmers’ access to fertilizer, including by increasing domestic production capacity.”
Vaughan agrees the timing is important as farmers prepare for fall fertilizer applications.
“This is very timely,” he says. “It takes about 90 to 120 days for a shipload of phosphate to get to the U.S. from Morocco, so this gives an opportunity for us to source phosphate at a cheaper price heading into fall and spring applications.”
A Trade Dispute Dating Back to 2020
The duties on Moroccan phosphate stem from a 2020 petition filed by fertilizer manufacturer Mosaic, which alleged Moroccan phosphate imports benefited from unfair government subsidies. Following investigations, the Department of Commerce and the ITC imposed countervailing duties on Moroccan phosphate fertilizer imports beginning in 2021.
Vaughan has argued the decision significantly reduced access to one of the world’s largest phosphate suppliers.
“Morocco has the largest phosphate deposits in the world,” Vaughan told AgWeb in March. “They have the ability to provide a lot of supply to us while our phosphate rock resources are declining here.”
Farm organizations have maintained that while removing the duties would not solve every fertilizer pricing challenge, restoring access to Moroccan phosphate would increase competition and improve supply options for U.S. growers.
Administration Cites Supply Chain Risks
In Monday’s proclamation, the administration said global phosphate fertilizer supply chains have been disrupted by geopolitical conflicts and trade actions taken by major fertilizer-producing countries, creating procurement challenges and increasing risks for U.S. agriculture.
The proclamation states domestic phosphate production is currently insufficient to meet U.S. demand after accounting for exports and says immediate action is necessary to ensure farmers have adequate fertilizer supplies ahead of the upcoming fall application season and 2027 crop year.
The order invokes emergency authority under Section 318 of the Tariff Act of 1930, allowing the Departments of the Treasury and Commerce to permit duty-free imports of Moroccan phosphate fertilizer for up to eight months while monitoring market conditions.
The administration also said the temporary suspension is intended to diversify fertilizer supplies while broader efforts to expand domestic fertilizer manufacturing continue. Earlier this year, USDA announced initiatives aimed at increasing domestic fertilizer production through permitting reforms and investments in new manufacturing capacity, though those projects are expected to take years to materially increase supply.
Temporary Relief as Sunset Review Continues
The proclamation comes as the Commerce Department and ITC are conducting the required sunset review of the countervailing duties, a process that determines whether the trade measures should remain in place.
Earlier this spring, reports said the administration was considering temporarily suspending the duties while that review moved forward. Even Trump said he had the executive authority to do so. However, no action had been taken until this week, even as the conflict in Iran sent fertilizer prices soaring this spring.
The executive action signed on Monday does not permanently repeal the countervailing duties. Instead, it provides temporary emergency authority to suspend their collection on Moroccan phosphate fertilizer imports through the earlier of eight months or the end of the declared emergency.
For growers who have argued the duties have unnecessarily increased fertilizer costs since 2021, the proclamation represents the first significant policy change on the issue while regulators continue evaluating the long-term future of the trade case.
Texas Corn Says Frustration Was Voiced, and the Trump Administration Listened
Texas Corn Producers applauded the administration’s decision to temporarily suspend countervailing duties on imported phosphate fertilizer, calling it a timely step for growers heading into the application season.
“This is a welcome win for Texas corn farmers,” Texas Corn Producers President Hagen Hunt says. “Fertilizer is one of the largest and most unpredictable costs we face, and easing the duties on phosphate gives growers some breathing room at a time when input prices have squeezed farm families hard.”
Hunt says the action reflects sustained advocacy from Texas Corn and other ag organizations that have pressed policymakers over fertilizer affordability and supply concerns.
“Texas farmers made their voices heard, and they were listened to,” Hunt says. “We’re proud to stand alongside our partners across the corn industry in this effort, and we’ll keep working to make sure farmers have access to affordable, reliable inputs.”
Part of a Broader Federal Focus on Fertilizer Markets
The temporary suspension of duties also comes as the Trump administration is pursuing a broader effort to address fertilizer costs from multiple angles.
In May, Federal Trade Commission Chairman Andrew Ferguson announced the agency had launched a formal, industry-wide investigation into fertilizer pricing and market concentration. Speaking to farmers gathered in Texas, Ferguson said the investigation was prompted in part by USDA data showing fertilizer has recorded the largest increase in production costs for U.S. farmers since 2020.
The investigation will examine pricing practices and competition within the fertilizer industry, including among major manufacturers such as Mosaic, Nutrien, CF Industries and Koch. The FTC has not alleged wrongdoing, but the investigation gives the agency subpoena power to determine whether antitrust violations or other unlawful business practices have occurred.
Farm groups have welcomed the investigation, arguing fertilizer prices have remained historically elevated even after many of the supply chain disruptions that followed the pandemic eased. They contend higher input costs have continued to pressure farm profitability as commodity prices have retreated from recent highs.
Together, the temporary suspension of duties on Moroccan phosphate imports, the administration’s push to expand domestic fertilizer manufacturing and the FTC’s ongoing investigation into fertilizer markets represent separate efforts aimed at increasing fertilizer availability, improving competition and addressing one of the largest input costs facing U.S. crop producers.
Fertilizer prices have eased in recent weeks, but farmers insist the broader issue is the lack of competition in the fertilizer industry today and the need for more domestic production.
USDA Pushing for Fertilizer Companies on Prices, Supply, Competition
In April, USDA Deputy Secretary Stephen Vaden told U.S. Farm Report the administration is taking a more direct approach with fertilizer manufacturers, pressing companies in high-level Washington meetings to address what officials describe as years of elevated prices and tight supply.
Vaden was candid in his comments and said cabinet officials, state agriculture leaders and fertilizer executives were brought together to confront concerns over pricing, market structure and long-term capacity.
“It was an opportunity for those other cabinet officials to hear from the fertilizer company executives, and for those fertilizer company executives to hear from the secretary and me… about the real harm that farmers are facing,” Vaden said following and Rollins’ meetings with high-level fertilizer executives.
He said USDA’s message to industry has been consistent.
“We are saying the same thing to everyone who comes before the department,” Vaden told U.S. Farm Report. “Be a part of the solution, don’t be a part of the problem.”
During the discussion, Vaden said the adminstration also focused on market concentration in key fertilizer segments, including phosphate, where a small number of companies control a large share of supply. Vaden said that level of consolidation raises concerns about competition and price discovery.
“With one of our fertilizer markets, there are two companies that control 90% market share. If there are only two major players, how can anyone be sure that the price you are paying reflects actual market conditions,” Vaden said in the interview.
Vaden said the effort reflects a longer-term push to increase supply and address what USDA describes as structural issues in fertilizer markets.
“This is an issue that has bedeviled American agriculture for at least five years, and it is time that it stopped,” Vaden said in April.
You can listen to the full interview and Vaden’s pointed comments on fertilizer from April.