Last week, the Department of Commerce announced they are raising tariffs on phosphate imports from Morocco to 14.21% from 2.12%. They also announced that they are lowering tariffs on Russian phosphate fertilizer imports to 18.83% from 28.5%.
The proposed new rates will go into effect in November and apply retroactively to 2022 imports and will act as the new provisional rate for imports until the next administrative review. The changes come after U.S. fertilizer company Mosaic petitioned the agency for action, saying tariffs are needed to create a competitive marketplace.
“The price of corn has dropped, and input costs are already high, so the Commerce Department’s decision is the last thing farmers need,” said Minnesota farmer and NCGA President Harold Wolle. “If fertilizers continue to go up in price and are hard to secure, farmers will only have Mosaic and the Commerce Department to thank.”
The tariffs are targeted at Morocco's largest exporter of phosphate fertilizers, OCP, which stopped shipments to the U.S. back in 2021 over high duties. OCP said in a statement that they are, " ...disappointed by these preliminary results, which we understand have been driven in significant part by flaws in the DOC’s methodology for evaluating OCP’s rights to mine phosphate ore."
“As soon as the conditions allow, we are ready to resume our critical role as a reliable, high-quality provider of sustainable phosphate fertilizers that are essential in enabling U.S. farmers to feed their fellow citizens and the wider world,” the exporter said in a statement.
Mosaic President and CEO Bruce Bodine, announced last week during their Q1 report that revenues are down 26% from last year, "reflecting the impact of lower selling prices."
“We know that, obviously, it’s got some uncertainty around it,” Bodine said during an earnings call last week. “But I do believe the U.S. farmers have adapted to that and it’s just modifying trade flows and bringing more competition and a more diverse slate of importers here in North America.”
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