More than 60 American agricultural organizations have formally called on the US government to remove countervailing duties on Moroccan phosphate fertilizers, warning that the measures are inflating input costs for farmers and jeopardizing the resilience of domestic food production. The appeal, addressed to Commerce Secretary Howard Lutnick in a letter dated March 20, 2026, comes as the duties are undergoing their five-year sunset review.
The tariffs date back to 2020, when US fertilizer giant Mosaic accused Morocco’s OCP Group of benefiting from government subsidies that gave its exports an unfair competitive advantage. The US Department of Commerce initially imposed duties of nearly 20%, which were subsequently reduced to approximately 2.1% following a series of legal challenges by OCP. A US federal appeals court formally closed the case on March 4, 2026, after the government voluntarily withdrew its appeal of a ruling favorable to OCP — a move widely interpreted as a strategic realignment by Washington, which has now reclassified phosphate as a critical mineral.
The farm groups argue that these tariffs have significantly reduced US farmers’ sourcing options, particularly at a time when global fertilizer supplies are already strained. Gulf conflict disruptions have pushed nitrogen fertilizer prices up by more than a third in recent weeks, compounding pressure on producers of corn, soybeans, and cotton. Fertilizer costs were already equivalent to up to 40% of production expenses in 2025 for some farm operations.
The organizations contend that Mosaic, the only domestic producer of phosphate fertilizers, has effectively used the tariff regime to consolidate its market position, limiting competition and keeping prices elevated. They also note that Saudi Arabia — where Mosaic holds production investments — remains exempt from equivalent duties, creating what critics describe as an uneven playing field.
Morocco holds approximately 70% of the world’s known phosphate reserves, making OCP a uniquely critical supplier for global food security. The ongoing review represents a significant opportunity to normalize trade flows between the two countries, with broad implications for US agricultural competitiveness and the bilateral relationship.
