What Happened?
Farmers across the U.S. are paying more for phosphate fertilizer, a key ingredient in growing crops, and a Washington decision could change that.
On June 29, the Trump administration issued an emergency proclamation to suspend countervailing duties (CVDs), tariffs meant to offset foreign government subsidies, on phosphate fertilizer imported from Morocco.
Those duties have been in place since 2021, after The Mosaic Company, described as the largest U.S. phosphate producer, filed a petition alleging that foreign governments were subsidizing overseas producers and hurting domestic industry. A report published by Congress' research branch laid out the history and tradeoffs of the duties and the suspension.
Why Does it Matter to Me?
The report noted that U.S. prices for certain phosphate fertilizers rose after an escalation of the U.S. conflict with Iran in February to their highest levels since September 2025. Higher fertilizer costs can push up what farmers spend to grow crops, and those costs can eventually reach grocery store prices.
From 2016 to 2025, the U.S. imported nearly 3 million metric tons of phosphate fertilizer per year on average, with Morocco, Russia, Saudi Arabia, and Israel as the main suppliers. After the 2021 duties took effect, imports from Morocco and Russia fell while imports from Saudi Arabia, Israel, and other countries rose to fill the gap.
Both Sides, Now
Agricultural groups favor removing the duties, arguing the tariffs raise costs for farmers who depend on affordable fertilizer to stay competitive. Domestic manufacturers support keeping them, saying they are a necessary response to foreign government subsidies that undercut U.S. producers.
Some lawmakers have urged revoking the duties or backed suspension legislation, including S. 4418 and H.R. 8583. Under current law, injury determinations do not weigh effects on downstream users such as farmers, so factoring in farm-level costs would require Congress to change the statute.
What Happens Next?
The Commerce Department had already issued instructions for duty-free entry and granted requests to several importers as of September, the report said.
The same emergency provision was used in 2022 to suspend duties on certain solar cells, and a federal trade court later ruled that suspension did not qualify, with appeals still pending. A ruling in that case could shape how courts view the fertilizer suspension.
Congress could also clarify or narrow which items qualify under the emergency provision. Still, fast-track tools to reverse the suspension face procedural hurdles, and whether the National Emergencies Act covers this emergency remains legally unsettled.
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