Process Economics Program

Fertilizers, Chemicals, Energy Transition, Renewables August 01, 2025 US fresh trade tariffs set challenges for the global fertilizers industry By Marina Silveira Lima, Lujan Scarpinelli, Lucas Sposito, and Hiron Pascon Getting your Trinity Audio player ready... HIGHLIGHTS Imports would face higher costs Ammonia, urea, phosphate would be impacted Brazil receives NPK fertilizers tariff exemptions The US government plans to implement new tariffs on imports from several foreign partners would impact various goods, including the fertilizer sector. The latest executive order signed by US President Donald Trump on July 31 modified the "reciprocal" tariff rates for certain countries to address trade imbalances and national security concerns. These tariffs will take effect on Aug. 7, according to the government document. These changes come as many of the listed countries rank among the top fertilizer exporters to the US from 2020 to 2024. The list of countries impacted by these tariffs includes Morocco, Saudi Arabia, and Egypt, which are key exporters of phosphate fertilizers to the US and will be subject to a 10% tariff, and Jordan and Israel, which will experience a 15% rate. Saudi Arabia supplied 519,000 mt of ammonium phosphate in the first five months of 2025, which represents nearly 54.7% of US imports of ammonium phosphate, according to S&P Global Market Intelligence's Global Trade Atlas data. Additionally, Trinidad and Tobago, which is one of the main origins for ammonia in the US, only behind Canada, will now incur a 15% tariff. However, market participants do not expect a huge impact in this case. "It's not like it's 50%," a source said. Algeria will face a 30% tariff on granular urea, and Nigeria will face a 15% tariff. Both are relevant suppliers for the US. Yet, market sources consulted by Platts, part of S&P Global Commodity Insights, said they were still digesting the possible implications of the measures and potential impact on trade flows. Meanwhile, certain key partners such as Canada and Mexico, and China, are governed by separate regulations and negotiation processes. For example, potassium fertilizers are covered under the US-Mexico-Canada Agreement, and therefore unaffected by the fresh increased tariffs up to 35% on Canadian imports starting Aug. 1. "We're still not sure about all other fertilizers from Canada, though," a US-based source said. Brazilian export duties appear with a 10% tariff in the order of July 31, which adds to the 40% signed on July 30, totaling 50%. However, following tough negotiations with the Brazilian administration, some fertilizer products have been included in a list of exemptions. Among others are mineral or chemical fertilizers containing the three fertilizing elements nitrogen, phosphorus, and potassium, and those containing phosphorus and potassium. Sources in the fertilizers industry in Brazil expressed concerns about possible retaliatory measures for imports from the US. Sulfur buyers in Brazil were waiting for definitions, with a participant rejecting an offer from the US Gulf amid uncertainties about the impact on prices. Platts last assessed monoammonium phosphate New Orleans barges at $785-$800/st FOB on July 31, while diammonium phosphate NOLA barges were assessed at $805/st FOB. On the same day, the assessment for urea in NOLA barges stood at $455-$465/st FOB, and ammonia in the Caribbean was assessed at $450/st FOB. Products & Solutions Crude Oil Gain a complete view of the crude oil market with leading benchmarks, analytics, and insights to empower your strategies. Learn More Editor: Karla Sanchez