Trump suspends Moroccan phosphate duties for eight months

President Donald Trump has declared an emergency over fertilizer supply and authorised the temporary suspension of certain anti dumping and countervailing duties on phosphate fertilizer imports from Morocco. The proclamation, signed on 29 June, uses section 318(a) of the Tariff Act of 1930 to permit duty free imports of Moroccan phosphate fertilizers for up to eight months, or until the emergency is terminated. The aim is to ensure “a sufficient and timely supply of phosphate fertilizers during the planting and growing season.”

White House highlights food and security risks

The White House notes that US producers of corn, soybeans, wheat and other crops “need phosphate fertilizers to ensure strong crop yields” and that domestic phosphate production is currently insufficient once exports are taken into account. It says conflicts in fertilizer producing regions and trade actions by major producers have disrupted global phosphate supply chains, and that the United States’ largest foreign source of phosphate fertilizer has faced supply chain disruption, increasing pressure on the farm economy. Producers in countries such as Morocco can supply phosphate fertilizers “without disruption at this time”, and imported phosphate is described as a critical plant food for robust and reliable food production.

Morocco CVDs suspended after years of pressure

The fact sheet states that the action temporarily suspends “certain anti dumping and countervailing duties” on Moroccan phosphate fertilizer for eight months or until the emergency ends. Those countervailing duties were first imposed in 2021 on phosphate imports from Morocco and Russia after cases filed by Mosaic, with subsidy rates including 19.97% for Morocco’s OCP and higher rates for named Russian producers, significantly raising landed costs and narrowing US import options. In February, we reported how this duty regime, combined with declining US granular phosphate output and the dominance of Mosaic and Nutrien in North American phosphate, helped push US DAP and MAP prices to some of the highest levels globally ahead of spring applications.

Treasury and Commerce tasked with implementation

Under the proclamation, the Secretary of the Treasury and the Secretary of Commerce are directed to permit, under section 318, the importation “free of the collection of duties and deposits of estimated duties” under the relevant trade remedy provisions for Moroccan phosphate fertilizers, for the duration of the emergency or up to eight months from 29 June. They must consult each other as appropriate, report actions to Congress, and monitor the emergency conditions and advise the President if further action is needed. Any inconsistent provisions of previous proclamations or executive orders are superseded.

Focus on US farmers and domestic production

The fact sheet frames the measure as safeguarding America’s food supply and supporting domestic agricultural production by “helping ensure an adequate supply of phosphate fertilizer for American farmers.” It links the decision to recent disruptions in fertilizer and input supply chains caused by conflicts and trade actions and says the Administration continues to work with US producers to expand domestic manufacturing capacity for elemental phosphorus and phosphate fertilizers, including via earlier Executive Orders on the Defense Production Act and agriculture innovation.