On Monday, the White House announced that President Donald Trump has authorized a temporary suspension of certain duties on phosphate fertilizer imported from Morocco. This decision comes as farmers face shortages exacerbated by the conflict in Iran.
White House economic adviser Kevin Hassett indicated in March that the Trump administration was exploring additional sources for fertilizer. Production from key suppliers in the Middle East has significantly declined due to the closure of the Strait of Hormuz.
In a proclamation, Trump noted, “Recent months have seen disruptions in global supply chains for phosphate fertilizer and its inputs due to conflicts in fertilizer-producing regions, as well as trade actions from major fertilizer-exporting countries.”
The proclamation also pointed out that current US phosphate fertilizer production is inadequate to meet domestic agricultural needs once exports are accounted for.
The Trump administration is collaborating with private sector stakeholders to enhance domestic fertilizer manufacturing capabilities, although these efforts will require time to substantially increase supply. Fortunately, Trump mentioned that suppliers from Morocco can currently provide phosphate fertilizers to the US without disruption.
In the proclamation, Trump declared a state of emergency, allowing for the temporary suspension of certain anti-dumping and countervailing duties on Moroccan phosphate fertilizer imports for eight months or until the emergency is lifted, whichever comes first.
The fertilizer market was significantly impacted following attacks by the US and Israel on Iran on February 28, leading to Iran’s retaliation against Israel and Gulf states housing US bases. Analysts have warned that the ongoing conflict endangers food security in developing nations, as a substantial portion of the world’s fertilizer production is concentrated in the Middle East.
