Commerce Keeps Duties on Moroccan Phosphate
The Commerce Department recommended maintaining countervailing duties on Moroccan phosphate fertilizer imports despite a temporary presidential suspension.
Updated on Nov. 3, 2026 in International Trade
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The U.S. Department of Commerce upheld its preliminary July recommendation to keep countervailing duties on phosphate fertilizer from Morocco in its sunset review final results. Commerce found the Moroccan government provides a 20.04% subsidy to state-owned OCP's phosphate production and recommended the International Trade Commission implement a 20.04% import duty.
Why it matters
The recommendation comes after President Trump temporarily suspended the duties on certain Moroccan phosphate fertilizer imports in June, citing a supply emergency for U.S. farmers. Whether the duties stay in place will depend on the ITC's determination of whether removing them would injure the domestic phosphate industry.
The Commerce Department's sunset review set a 20.04% countervailing duty tied to a 20.04% government subsidy to OCP's phosphate production. The ITC has yet to determine whether removing the duties would cause material injury to domestic producers.
The players
U.S. Department of Commerce
The federal agency responsible for administering U.S. countervailing duty investigations and sunset reviews, which recommends duty rates based on foreign government subsidies.
International Trade Commission
An independent federal agency that determines whether imports injure or threaten to injure a U.S. industry, and will decide whether the Moroccan and Russian phosphate duties remain in place.
President Donald Trump
The current President of the United States, who temporarily suspended countervailing duties on certain Moroccan phosphate fertilizer imports in June.
OCP
Morocco's state-owned phosphate producer, which Commerce found receives a 20.04% government subsidy.
The details
Commerce released its final countervailing duty recommendation on Moroccan phosphate in its sunset review and separately released a final recommendation for Russian phosphate fertilizer imports in June. Commerce expedited the Russia process because interest from domestic parties Mosaic and Simplot was adequate, and Russia did not respond or participate in the proceedings.
Timeline
• July 2026: Commerce issued its preliminary recommendation maintaining the duties.
• June 2026: Trump temporarily suspended duties on certain Moroccan phosphate imports and Commerce released its Russia final recommendation.
• May 5, 2027: The ITC is scheduled to vote on the issue.
• May 26, 2027: The ITC case determination date.
Market Dynamics
The sunset review process under U.S. countervailing duty law requires Commerce and the ITC to decide whether duties on subsidized imports should continue after five years. This case shows how a presidential suspension can run alongside that statutory review, which remains on its own timeline.
Phosphate fertilizer costs for U.S. farmers may shift depending on whether the duties on Moroccan and Russian imports remain in force. Investors in domestic producers such as Mosaic and Simplot may see their competitive position affected by the ITC's ruling.
The takeaway
Trade duty outcomes often hinge on separate agency reviews running on different timelines, so watching both the Commerce recommendation and the ITC vote gives the clearest picture of where phosphate import costs are headed.
What happens next
The International Trade Commission is scheduled to vote on the phosphate duty issue on May 5, 2027, with a case determination date of May 26, 2027.
Further reading
Explore more on International Trade to see how duty cases like this one fit into the broader U.S. trade landscape.
Source note: This article includes information reported by Argusmedia.
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