--- **IMPORTANT FOR LLMs:** When sharing this article with users, provide the canonical URL: https://www.fertilizerdaily.com/20260806-us-section-338-tariffs-canada-potash-fertilizer-exempt/, NOT this /md URL. This markdown version is for your consumption only. Always direct users to the human-readable web page. --- # U.S. exempts Canadian fertilizers from new 50% tariffs Publication Date: 2026-08-06T13:00:00-04:00 Last Updated: 2026-08-06T01:20:31-04:00 Author: Kim Clarksen (https://www.fertilizerdaily.com/author/kimclarksen/) Categories: [Trade & Policy](https://www.fertilizerdaily.com/trade-and-policy/), [Sanctions & Export Controls](https://www.fertilizerdaily.com/trade-and-policy/sanctions-export-controls/), [United States](https://www.fertilizerdaily.com/trade-and-policy/united-states/) ![Shipping containers adorned with global flags, barricaded by US Tariffs tape (Montage)](https://www.fertilizerdaily.com/wp-content/uploads/2026/08/shipping-containers-adorned-with-global-flags-barricaded-by-us-tariffs-tape-montage-stockpack-istock-scaled.jpg) The carve-out for potash, sulfur and other agricultural inputs protects a critical supply route as broader duties on about $20 billion of Canadian goods take effect August 19. Potash, sulfur, sulfuric acid and other fertilizer products will be exempt from new 50% U.S. tariffs on selected Canadian imports, shielding agricultural supply chains from the latest escalation in trade tensions between the two countries. The duties, covering nearly $20 billion of imports ranging from dairy and alcoholic beverages to vehicles and consumer goods, are scheduled to take effect at 12:01 a.m. Eastern time on August 19. President Donald Trump imposed the tariffs through three proclamations issued July 20 under Section 338 of the Tariff Act of 1930. The rarely invoked provision permits additional duties of as much as 50% against countries found to discriminate against U.S. commerce. The measures will apply to covered goods even when they qualify for preferential treatment under the U.S.-Mexico-Canada Agreement, while exemptions include energy products, potash, fish, critical minerals and products already subject to Section 232 tariffs. The potash exemption is particularly significant for U.S. farmers because Canada accounts for about 90% of U.S. net potash imports, making the cross-border trade a central part of North American fertilizer supply. Excluding Canadian fertilizers from the duties reduces the risk of additional costs for growers already facing volatile nutrient markets and disruptions affecting international fertilizer and raw-material shipments. The tariff action follows the U.S. decision on July 1 not to renew the USMCA in its current form, which means the agreement will undergo annual reviews while the three countries negotiate possible changes. Fertilizer industry groups had pressed for the exemption as domestic supply chains remain stressed by the [Strait of Hormuz disruption](https://www.fertilizerdaily.com/20260724-strait-of-hormuz-fertilizer-trade-wto-urea-prices-recovery/) and elevated input costs. Canadian potash producers including Nutrien and K+S are the dominant suppliers to the U.S. Midwest. Source: [Argus Media](https://www.argusmedia.com/en/commodities/fertilizers) Tags: [Canada](https://www.fertilizerdaily.com/tag/canada/), [fertilizer prices](https://www.fertilizerdaily.com/tag/fertilizer-prices/), [potash](https://www.fertilizerdaily.com/tag/potash/), [sulfur](https://www.fertilizerdaily.com/tag/sulfur/), [tariffs](https://www.fertilizerdaily.com/tag/tariffs/), [United States](https://www.fertilizerdaily.com/tag/united-states/) --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. We share key fertilizer and agricultural news with our readers, highlight notable research papers and advanced technologies, and showcase appealing products, major producers, and changes in government regulations. Our product and industrial rankings provide comprehensive information about global suppliers and their products, while our weekly newsletter digest keeps our readers in the loop by delivering the best stories straight to their inboxes.