Tariffs and Ag Fertilizer Under New President

Agricultural fertilizers are subject to an import tax we call a tariff. The previous Trump administration imposed a 25% duty on fertilizers imported from China. It remains in place, and the Biden administration imposed a 20% tariff on phosphate imported from Russia and Morocco. Josh Linville analyzes a fertilizer market for StoneX, and says, if the incoming Trump administration imposes a 10% tariff on all goods coming into the US, it will do more than simply raise prices.

“The anticipation was the penalty would be paid by the nation that they were imposed against Morocco, against Russia, and they would have to pay their 510, 15% duty to the government in order to bring tons in here, what that doesn't look at is that, because it is a commodity, that country has the ability to go elsewhere. And they have been very successful because of how tight global phosphate markets have been on an inventory perspective.”

USDA reports phosphate fertilizer prices rose by 93% as for President Trump's campaign promise to impose a 60% tariff on incoming goods from China, it would not impact the fertilizer market in the United States, according to Linville, because that flow has already stopped. However, an expanded trade war that would include all goods imported from all countries would be an issue, particularly with Russia.

“Now, not only is it phosphate that's cut off from coming here, they'll probably start doing the same thing with potash and nitrogen.

StoneX’s is Josh Linville.