President Donald Trump added Moroccan fertilizer to the growing list of products exempted from tariffs as his administration grapples with inflation concerns.
The Iran war has disrupted supply chains for products such as oil and fertilizer, spiking costs and putting pressure on the global economy. Trump issued a June 29 proclamation stating that fertilizer costs and “procurement challenges” are impacting the American “farm economy and the production of certain categories of domestic food.”
The proclamation declares a state of emergency and the temporary suspension of certain duties on imports of phosphate fertilizer from Morocco for eight months, or until the emergency is terminated, whichever occurs first.
“It is imperative to immediately facilitate importation of phosphate fertilizers from the Kingdom of Morocco to mitigate the significant risk to the agricultural food production of the United States, to safeguard the economic and national security of the United States, and to ensure a stable domestic food supply,” the order states.
After pushing an aggressive trade agenda centered around higher tariffs during his first year back in office, Trump has sought to ease import barriers amid concerns about high consumer prices.
Trump exempted a wide range of agricultural items from his reciprocal tariffs in November, slashing levies on beef, coffee, chocolate, bananas, tomatoes, oranges and other products. Earlier this year, he delayed a tariff increase on upholstered furniture, kitchen cabinets and vanities. He also allowed more beef from Argentina to enter the U.S. tariff-free.
The Iran war is adding to cost concerns, with inflation spiking since the start of the conflict. The annual inflation rate hit 4.2% in May, the steepest increase in three years and up from 2.4% in February before the war.
After the U.S. and Israel attacked Iran on Feb. 28 and Iran responded by attacking Israel and Gulf states that host U.S. bases, the conflict severely disrupted fertilizer markets that analysts warned endangered food security for developing countries. Much of the world’s fertilizer is made in the Middle East.
White House economic adviser Kevin Hassett said in March that the Trump administration was seeking more sources of fertilizer. Supply from major producers in the Middle East was sharply cut by the closure of the Strait of Hormuz.
Contributing: Reuters, Rachel Barber. Reporting by Zac Anderson, USA TODAY / USA TODAY Network via Reuters Connect
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