New 37-Page Tariff Exemption List Could Save US Farmers Over $100 Per Ton on Fertilizer

The White House has released a critical 37-page document detailing which agricultural inputs are now exempt from a sweeping 10% tariff, as well as higher retaliatory tariffs previously imposed on specific trade partners. Key items on the list include potash fertilizer, herbicides like paraquat and diquat, veterinary sedatives, vaccines, and even certain wood products and lubricants.

This move follows months of pressure from agricultural groups and lawmakers representing farming states. Betty Resnick of the American Farm Bureau Federation emphasized that while producers still face rising costs, the inclusion of vital products like potash and peat reflects the power of unified advocacy.

However, the relief comes with limitations. Foreign retaliation remains a looming threat. China has already hiked tariffs by 34% on all US exports, while the European Union is reportedly crafting its own response. These measures could dull the impact of the exemptions.

In a temporary reprieve, Canada and Mexico have been spared from the new tariff round. Although earlier duties on metals and autos remain in place, most goods under the USMCA agreement continue to enjoy tariff-free access. Still, Canada’s Prime Minister Mark Carney signaled that countermeasures are still on the table.

The exemption for potash may be the most crucial. With over 90% of US potash imports coming from Canada, a 25% tariff could have driven prices up by more than $100 per ton. Domestic production can’t fill the gap, and other key suppliers like Russia and Belarus are currently limited by sanctions and export restrictions due to the war in Ukraine.

According to the USDA, potash accounts for 22% of total corn production costs in 2024. Without the exemption, American farmers would have been forced to absorb a punishing increase in one of their most essential inputs.