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Trump Threatens Severe Tariffs on Canadian Fertilizer as U.S. Opens Price-Fixing Probe

U.S. reliance on Saskatchewan potash leaves little capacity to replace imports quickly, driving up farm costs.

Overview

  • President Trump threatened “very severe” tariffs on Canadian fertilizer while unveiling US$12 billion in farm aid, arguing tariffs could boost domestic output.
  • The administration launched a Department of Justice investigation into alleged price-fixing by foreign fertilizer suppliers, placing Canadian producers under scrutiny.
  • Industry figures show U.S. farms used about 5.3 million tons of potash in 2023 but produced roughly 400,000 tons, with more than 80% of imports sourced from Canada.
  • Fertilizer Canada and the Saskatchewan Mining Association say expanding capacity takes 10 to 15 years, so tariffs would raise input costs and strain North American supply chains.
  • Saskatchewan Premier Scott Moe urged calm, warning U.S. buyers could turn to Russia for supply and that Canadian miners would redirect exports to other markets.