Story perspectives

Trump Suspends Moroccan Fertilizer Duties, Cuts Prices 22%

7/2/2026

Summary

Trump Suspends Duties

U.S. President Donald Trump suspended duties up to 16.8% on Moroccan phosphate fertilizer for up to eight months.
The Department of Commerce moved the five-year review’s preliminary decision deadline to July 20.
The Department of Agriculture expects a 22% price drop and $1.82 billion in annual farmer savings, while a Texas A&M University study said duties added $6.9 billion to U.S. fertilizer costs 2021-2025.

Summary

Ferguson Launches Probe

Federal Trade Commission (FTC) Chairman Andrew Ferguson launched an industry-wide probe into fertilizer pricing and market concentration, with subpoena authority.
United States Department of Agriculture (USDA) Deputy Secretary Stephen Vaden said two firms control 90 % of the U.S. phosphate market.
The administration invoked the Defense Production Act in February 2026 to protect phosphorus production.
Farm groups welcomed the FTC inquiry, citing chronic competition shortages that inflate input costs.

Summary

Texas Growers Urge

Over 50 grower groups led by Texas Corn Producers Association urged Commerce and Trade Commission to revoke the duties.
Tyne Morgan cited Texas A&M study that duties raised DAP prices 29% and added $6.9 billion in costs 2021-2025.
Jed Bower thanked President Donald Trump and said the duty drop should boost supply and margins, adding that OCP Group holds over 70% of phosphate rock reserves and stands to gain market share.

Summary

Trump Seeks Aid

The proclamation invoked Section 318 of the tariff law, citing the Iran war as a fertilizer threat and reporting that about 70 percent of U.S. farmers cannot afford fertilizer.
U.S. President Donald Trump asked Congress to approve an $11 billion bill to offset farmer damage from the Iran war.
The Working Families Tax Cuts Act eliminates death tax, adds a 20 percent small-business deduction, and lets farmers defer capital gains taxes on farmland sales.

History

Historical Context

The October 1973 OAPEC oil embargo cut output and lifted world oil prices from about $3 to $12 per barrel, prompting governments to monitor market power in vital inputs. That early antitrust vigilance laid groundwork for later commodity probes, and today the FTC, under Chairman Andrew Ferguson, is reopening scrutiny of the phosphate market.

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Trump Suspends Duties

U.S. President Donald Trump suspended duties up to 16.8% on Moroccan phosphate fertilizer for up to eight months.
The Department of Commerce moved the five-year review’s preliminary decision deadline to July 20.
The Department of Agriculture expects a 22% price drop and $1.82 billion in annual farmer savings, while a Texas A&M University study said duties added $6.9 billion to U.S. fertilizer costs 2021-2025.

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