Trump suspends import duties on Moroccan fertilizer for eight months to ease supply

US President Donald Trump June 29 temporarily suspended countervailing duties on certain Moroccan phosphate fertilizer imports, aiming to increase US phosphate fertilizer availability, improve competition and lower crop input costs, according to an emergency proclamation released by the White House.

The proclamation authorizes the temporary suspension of the Moroccan CVD for eight months or until a current supply-chain emergency is terminated, whichever occurs first. The duty suspension applies to certain products currently subject to antidumping and countervailing duty orders, mainly ammonium phosphate and superphosphates.

"Global supply chains for phosphate fertilizer and fertilizer inputs, including imports of such products into the United States, have been disrupted in recent months by, among other things, conflicts in fertilizer-producing regions as well as trade actions taken by major fertilizer-producing countries," Trump said.

Countervailing duties on Russian producers' and state-owned Moroccan producer OCP's exports to the US have been in place since March 2021.

Global fertilizer supply chains have faced significant disruption since the start of the Middle East war, with particular strain on sulfur and phosphate flows through the Strait of Hormuz.

Saudi Arabia's role as a major fertilizer exporter has been particularly affected by the disruptions, with an estimated nearly 6 million mt of annual phosphate capacity relying on passage through the strategic waterway, according to data from S&P Global Energy CERA.

Saudi producer Maaden, the world's largest corporate DAP/MAP exporter, had its output affected by the Hormuz bottleneck, and said in March it would ship phosphate from the Red Sea port of Yanbu by April.

Saudi Arabia accounted for 42% of US DAP/MAP imports in 2025, while phosphate exports from Saudi Arabia to the US dropped from 124,000 mt to 46,000 mt between January and February 2026, according to S&P Global Commodities at Sea data.

Developments

The emergency proclamation stated that temporary duty-free treatment is necessary to ensure an adequate supply for US agricultural needs, according to the White House.

"The proclamation is providing immediate relief to American farmers while advancing the Administration's broader strategy to strengthen America's fertilizer supply chain," the US Department of Agriculture said. "Helping to lower one of agriculture's largest production expenses while supporting a stable and reliable fertilizer supply ahead of future planting seasons."

The USDA estimates that domestic farmers could save approximately $1.82 billion annually through lower phosphate fertilizer costs as additional supplies enter the US market.

"The announcement will bring immediate relief to producers who rely on these critical inputs with an estimated 22 percent reduction in phosphate fertilizer prices," Secretary of Agriculture Brooke Rollins said.

The US government announcement follows the designation of phosphate and potash as critical minerals and the signing of a USDA/Department of Justice memorandum of understanding to address anti-competitive practices affecting agricultural inputs.

In 2026, the US has also worked with federal partners to accelerate major domestic fertilizer manufacturing projects and has established a dedicated USDA Agricultural Economist position focused on fertilizer markets and agricultural inputs.

"This is such welcome news for corn farmers. Fertilizer represents one of the biggest expenses for farms every year, only made worse in recent years by actions of companies looking to further consolidate their control of the market," Ohio farmer and National Corn Growers Association President Jed Bower said June 29. "Input prices generally have been incredibly high and are a major contributing factor to the profitability picture, or lack thereof, for corn farmers right now."

Sunset review

The current import injury investigation on phosphate fertilizers began in 2020, when Commerce said it had preliminarily found phosphate fertilizer imports from Morocco and Russia benefit from countervailable subsidies.

Leading up to June 30, Commerce examined whether revocation would likely lead to the continuation and recurrence of countervailable subsidies, as CVD orders are subject to sunset review every five years.

Commerce initiated the first sunset review of the CVD order on Moroccan phosphate fertilizers on March 2, with the extended deadline for issuing the preliminary results set for July 20, 2026. In addition, Commerce published the notice of initiation of the first sunset review of phosphate fertilizers from Russia on March 2.

Commerce said on June 30 that the revocation of the Russian CVD would be "likely to lead to continuation or recurrence of countervailable subsidies" at weighted-average dumping margins of 24.11% for EuroChem, 14.64% for JSC Apatiti, and 16.64% for all others.

Platts, part of S&P Global Energy, assessed New Orleans monoammonium phosphate at $764/short ton FOB and NOLA diammonium phosphate at $784/st FOB, both lower week over week on June 25.