EU suspends fertilizer tariffs to offset CBAM costs

The tariff suspension, announced on 24th February, implements a commitment made at an EU ministerial meeting on 7th January. It will apply to all countries, except Russia and Belarus, and is designed safeguard the availability and affordability of fertilizers in Europe.

MFN tariff rates are currently 6.5% for urea and 5.5% for ammonia.

The Commission says it is committed to addressing rising costs faced by EU farmers – including the high costs of fertilizers.

“The measure will strengthen the EU’s agri-food sector, lowering costs for farmers and the fertilisers industry by saving an estimated €60 million in import duties. It will also facilitate the reduction of the EU’s dependency on Russia and Belarus and support diversification of supply, where imports are still needed for the EU agricultural sector and the fertiliser industry,” the Commission said in a statement.

The plan to suspend MFN tariffs was first proposed by Maroš Šefcovic, European Commissioner for Trade, at the 7th January ministerial meeting. He noted that fertilizer prices are currently around 60% higher than they were in 2020.

“This is not sustainable. That is why the Commission is putting forward an additional targeted response. We will propose to temporarily suspend the remaining most-favoured nation (MFN) tariffs on urea, ammonia, and, where necessary, other fertilisers,” Šefcovic said.

“This measure can enter into force swiftly in 2026 and its impact would broadly offset the costs linked to the carbon border adjustment mechanism (CBAM) which took effect this January,” he added.

Šefcovic also confirmed that the Commission will issue guidance on new CBAM measures proposed by the Commission last December. The measures included a flat 1% markup on fertilizer default values, as an exception to CBAM’s standard calculation rules (Fertilizer International 530, p8). Fertilizers were the only CBAM-affected commodity to benefit from such an exception.

“We will continue to monitor fertilizer prices closely,” Šefcovic said. He also confirmed that an EU fertilizer action plan will be published in the second quarter of 2026. This will “focus on greater market transparency and on scaling up recycled nutrients” and be “supported by regulatory adjustment where needed”.

“Let me be absolutely clear, EU agriculture is a global export powerhouse,” Šefcovic said. “Farmers concerns are not an afterthought in our trade policy – they are central.”

EU agricultural exports hit €235bn in 2024, a 3% year-on-year rise.