Access to tariff-free fertilizer is essential for producers, Fertilizer Canada says
Canada’s fertilizer industry is highlighting how deeply intertwined the U.S. and Canada are in this sector.
Each country is reliant on each other for key fertilizer ingredients.
“In 2023, the U.S. consumed 5.3 million tonnes of potash and produced nearly 400,000 tonnes,” Fertilizer Canada told Farms.com in an emailed statement. “Canada is dependent on the U.S. for 95 per cent of its phosphate supply, representing nearly half of the U.S.’ exports. To protect the competitiveness of North American farmers, access to a reliable supply of tariff-free fertilizer is essential.”
Fertilizer Canada’s comments come after President Trump suggested placing heavier tariffs on Canadian fertilizer.
While announcing a $12 billion aid package for U.S. producers, the president indicated placing tariffs on Canadian fertilizer will help domestic production.
“A lot of it does come in from Canada, and so we’ll end up putting very severe tariffs on that, if we have to, because that’s the way you want to bolster here,” he said on Dec. 8. “And we can do it here. We can all do that here.”
Canadian fertilizer to the U.S. is currently tariffed at 10 per cent but only for volumes exceeding CUSMA limits.
The U.S. does have potash resources.
Most of its production is concentrated in New Mexico and Utah. Other sources are in the Holbrook Basin of Arizona and under central Michigan, the U.S. Geological Survey says.
During the Dec. 8 meeting with President Trump, Agriculture Secretary Brooke Rollins said her department is developing a plan to reshore fertilizer production to the United States.
But even if the U.S. wanted to increase domestic production, that takes time. Time American farmers will need to fill with Canadian potash.
“Increasing fertilizer production cannot happen overnight and can take ten to 15 years to increase. Potash, for example, is a mined mineral dependent on naturally occurring deposits, and the U.S. does not have sufficient reserves to meet domestic demand,” Fertilizer Canada said.