Tariffs on fertilizer cause drop in shipments to US, Mosaic says
Mosaic Co., the world’s leading producer of two key crop fertilizers, said US tariffs are weighing on shipments.
Phosphate deliveries to the US are “tracking well below last year” with levies applicable to most sources of the fertilizer, the company said in its earnings release. Meanwhile, farmers have less to spend on nutrients as corn and soybean prices fall on “global trade uncertainty” and the anticipation of large harvests.
Demand elsewhere in the world is absorbing some of the volumes no longer bound for the US, Mosaic said. The company posted an $8 million loss in its phosphate earnings in the second quarter. China is the world’s biggest producer of the crop input.
Mosaic said rising prices for phosphate and potash, another key fertilizer, boosted second-quarter net potash sales up from the prior year, while offsetting lower phosphate volumes to keep sales flat. Potash, largely produced in Canada, is among the goods exempt from US tariffs under a North American trade agreement.
The Tampa-based company reported second-quarter sales volumes for phosphate and potash that trailed analyst estimates. Earnings per share missed even the lowest of analyst estimates compiled by Bloomberg, reflecting extensive maintenance.
Still, the company said it remains optimistic as “any demand deferral or reduction exiting 2025 sets the stage for strong demand in 2026, as nutrients removed from this year’s crops need to be replenished.”
Shares slumped more than 6% after regular-trading hours in New York.
(By Ilena Peng)
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