Effective today, President Trump implemented new tariffs on major trade partners:
- Canada and Mexico: 25% tariff on imports, with a reduced 10% tariff on Canadian energy resources and minerals.
- China: The existing 10% tariff on Chinese goods has been increased to 20%.
The administration says the goal of the tariffs, which were originally announced February 1, is to pressure Canada, Mexico and China to enhance efforts against drug trafficking, illegal immigration and fentanyl production.
The Fertilizer Institute (TFI) president and CEO Corey Rosenbusch says the tariffs will effect fertilizer that is essential to successful harvests and affordable food for American families. For example, 85% of potash used in the U.S. comes from Canada.
In a statement Rosenbusch said: “TFI continues to urge the Administration to provide a strategic carveout for Canadian fertilizers from these tariffs, including through designation as critical minerals. With the spring planting season fast approaching and U.S. agriculture continuing to face serious headwinds, maintaining reliable and cost-effective fertilizer supply chains is essential to ensuring a productive harvest and protecting American farmers from unnecessary financial strain.”
“Additionally, Canada supplies U.S. growers with nearly 10% of their nitrogen fertilizer needs, accounting for 25% of total nitrogen fertilizer imports, and nearly 20% of sulfur consumed by U.S. farmers and others.”
In 2023, U.S. imported nitrogen, phosphorus and potassium fertilizer products valued at more than $10 billion, and of that more than half came from Canada.
Additionally, TFI and the Agricultural Retailers Association (ARA) issued the following joint statement regarding the Trump administration’s announcement on tariffs on imports of Canadian goods:
“TFI and ARA acknowledge the Trump administration’s commitment to strengthening American industry, including the agriculture economy. However, we are concerned about the impact of the 25% tariffs on Canadian imports to farmers and the entire agriculture supply chain.
“The 25% tariffs on critical fertilizer imports from Canada, including potash, ammonium sulfate, nitrogen fertilizers and sulfur will drive up the cost of production for U.S. farmers. These costs ripple throughout the agriculture community, ultimately leading to higher prices at the grocery store.”
The joint statement also requests a strategic carveout that would include critical minerals such as potash and phosphate.
