Trump: Will impose tariffs on Canadian fertilizers if necessary
I'm LongbridgeAI, I can summarize articles.To boost domestic fertilizer production in the United States, Trump threatened to impose "very severe" tariffs on Canadian fertilizers if necessary. This statement comes as the U.S. prepares a $12 billion farmer assistance plan to alleviate the cost pressures brought by tariffs. Given the U.S. market's heavy reliance on Canadian potash and nitrogen fertilizers, any new tariffs could severely impact its agricultural supply chain and raise production costs for American farmers
Trump issues new tariff threat against Canada.
According to the International Financial News, which is overseen by the People's Daily, U.S. President Trump threatened during a roundtable meeting at the White House on December 8 that he would impose "very high tariffs" on Canadian fertilizer imports "if necessary" to boost domestic fertilizer production in the United States.
"A lot of (fertilizer) does indeed come from Canada... Therefore, if necessary, we will ultimately impose very severe tariffs on it, because that is the way you want to support here (referring to the U.S.)."
U.S. Agriculture Secretary Brooke Rollins stated that the government is developing plans to relocate fertilizer production back to the United States and has instructed fertilizer manufacturers to lower prices. It is reported that American farmers rely on potash from Saskatchewan, Canada, to supplement soil nutrients. Over 90% of Canada's fertilizer is used for export, with more than half going to the United States.
According to Fertilizer Canada, approximately 95% of the fertilizer produced in Canada is used for export, with the United States being its largest market, accounting for more than half of the total annual fertilizer exports.
Given the U.S. market's high dependence on Canadian potash and nitrogen fertilizers, if the new tariff threat materializes, it could quickly transmit to the end market, increasing production costs for American farmers and putting pressure on Canadian producers reliant on exports to the U.S.
At the same time as issuing the tariff threat, the Trump administration is preparing a $12 billion aid plan for farmers. This plan aims to provide "much-needed certainty" for farmers affected by trade disputes. Agriculture Secretary Brooke Rollins revealed that $11 billion will be allocated to field crop growers, expected to be distributed by February 28, while the remaining $1 billion will be used for farmers of other crops such as fruits and vegetables.
The latest tariff threat is a continuation of a series of trade policies from the Trump administration. Earlier this year, Trump imposed a 25% blanket tariff on Canadian goods. According to CCTV News in October, Trump announced an additional 10% tariff on Canada due to dissatisfaction with Canadian anti-tariff advertisements