Agriculture

What's the Tariff on Fertilizer?

Imported fertilizers face tariffs that directly raise costs for American farmers.

💡
The 15% tariff on Fertilizer is paid by American importers, not foreign manufacturers. Your Ton of DAP Fertilizer now costs $667 instead of $580 — that's $87 more, or 15% of the sticker price going directly to tariff taxes.

Current Tariff Rate

15%

Pre-2025 Rate

0%

Rate Increase

+15pp

Price Impact

+15%

+$87

Real-World Price Impact

Before Tariffs

$580

Ton of DAP Fertilizer

→

After Tariffs

$667

Ton of DAP Fertilizer

That's $87 more per unit — a 15% price increase paid by the American buyer.

Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.

The Story Behind This Tariff

Fertilizer tariffs illustrate the unintended consequences of broad trade policy on domestic agriculture. The US imports roughly 30% of its fertilizer supply, primarily from Canada, Morocco, Russia (pre-sanctions), and Trinidad and Tobago. When the Section 122 baseline tariff applied a 10% rate to all imports in spring 2026, fertilizer was swept in despite agriculture lobbying for exclusions. After Section 122 expired in July, the Section 301 forced labor tariff of 10-12.5% partially replaced it for Chinese and Moroccan sources, while Canadian fertilizer now faces the 50% Section 338 retaliatory tariff — a devastating blow since Canada supplies about 40% of US potash imports. American farmers, already squeezed by high input costs and volatile commodity prices, now face $8-15/acre higher fertilizer costs. The irony is stark: tariffs designed to protect American industry are raising costs for American agriculture, the sector most dependent on exports and thus most vulnerable to retaliatory tariffs from trading partners.

📦 Supply Chain

Primary Origin

Canada, Morocco, Trinidad & Tobago

Made in USA

70%

Import Volume

$14.8B

Alternatives

Domestic production covers most nitrogen; potash and phosphate heavily imported

📅 Tariff Timeline

2018

No tariffs on most fertilizer imports

0%

2025

IEEPA baseline briefly applies

10%

2026-Mar

Section 122 baseline tariff applies to all fertilizer imports

10%

2026-Jul

Section 122 expires; Section 301 forced labor tariff + Section 338 Canada tariff replace

10-50%

👥 Consumer Impact

Households Affected

2M farm households (direct), 130M (food prices)

Annual Cost Per Household

$60

💡 Did You Know?

  • •Canada supplies about 40% of US potash — a fertilizer ingredient with no domestic substitute at scale
  • •Fertilizer costs represent 15-25% of total farm operating expenses for corn and wheat farmers
  • •The Fertilizer Institute estimates tariffs will add $3.5B annually to US farm input costs

Tariff Details

HTS Code
3105.20
Current Rate
15%
Pre-2025 Rate
0%
Tariff Type
Section 301 + Section 122 (expired)

Legal Authority

Section 301 + Section 122 (expired)

Effective: 2025

Tariff imposed under presidential trade authority

The tariff on Fertilizer is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.

Who Actually Pays This Tariff?

Despite claims that tariffs are paid by foreign countries, the 15% tariff on Fertilizer is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.

  • ✓ The foreign seller receives the same price as before
  • ✓ The US importer pays 15% of the customs value to CBP
  • ✓ The retailer marks up the higher landed cost
  • ✓ You pay more at the register: $580 → $667

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