US lifts new tariffs on key phosphate fertilizer imports, importers stay cautious

The US phosphate market participants will watch for price developments following the modification of the scope of tariffs, which exempt most phosphate fertilizers.

US President Donald Trump's newly signed executive order on Nov. 13 specifies that while some fertilizers will remain under tariffs, most phosphate fertilizers are now exempt to strengthen the US economy and national security.

The updated Annex II of Executive Order 14257 assessed the products that will no longer be subject to reciprocal tariffs, including diammonium phosphate, monoammonium phosphate, nitrogen and phosphate fertilizers, and superphosphate fertilizers containing by weight 35% or more of diphosphorus pentoxide (P2O5).

"The Executive Order follows the significant progress the President has made in securing more reciprocal terms for our bilateral trade relationships," the White House said Nov. 14. "President Trump's deals have had and will continue to have broad impacts on domestic production and the economy as a whole, including enhanced market access for our agriculture exporters."

By now, a trader expects that US distributors may bid for DAP and MAP New Orleans barges at lower prices following the announcement.

MAP New Orleans traded at $675/st FOB for January before the announcement on Nov. 14. On Nov. 17, MAP NOLA was offered at $680/st FOB, with a bid reported at $595/st FOB both for December and January shipments.

"I'm on hold for now on any phosphate purchases," a distributor said on Nov. 17.

The top exporters of phosphate fertilizer to the US faced tariffs of 10%-25%, as announced on July 31 and taking effect on Aug. 7.

The countries, including Morocco, Saudi Arabia, Egypt, Jordan, Israel, Australia, Tunisia and Lebanon, provided around 84% of the US' ammonium phosphate and triple superphosphate imports in 2024, representing 2.521 million metric tons imported, according to S&P Global Market Intelligence's Global Trade Atlas data.

Phosphate fertilizer origins covered under an existing countervailing duty tariff rate, primarily from Morocco and Russia, remain applicable, according to sources.

Platts assessed MAP New Orleans barges at $710/st FOB and assessed DAP NOLA barges at $759/st FOB on Nov. 13.