U.S. Commerce recommends keeping 20% Moroccan phosphate duties despite Trump’s emergency suspension

The U.S. Department of Commerce has recommended maintaining countervailing duties on phosphate fertilizer imports from Morocco, finding that revocation would likely lead to continued subsidization of Moroccan producer OCP at a rate of 20.04%.

The preliminary determination, published on July 24 as part of a five-year sunset review, comes less than a month after President Trump suspended the same duties for up to eight months under an emergency proclamation citing threats to U.S. fertilizer supply.

Commerce’s original investigation found a 19.97% subsidy rate, and the updated figure reflects the addition of new Moroccan subsidy programs identified in later administrative reviews, minus a terminated export-tax incentive. The department also recommended maintaining duties on Russian phosphate exports, setting rates of 24.11% for EuroChem, 14.64% for PhosAgro and 16.64% for all others.

The two tracks now run in parallel: OCP can ship duty-free to the United States through roughly February 2027 under the emergency suspension, while Commerce continues its sunset review process that could make the duties permanent.

OCP has already begun shipping phosphate to the United States following the suspension, with USDA Deputy Secretary Stephen Vaden confirming that an initial cargo of 54,000 metric tons was en route to New Orleans. U.S. fertilizer producer Mosaic, which originally petitioned for the duties in 2021, has not publicly commented on the sunset review findings.

Source: Argus Media