Trump threatens ‘severe tariffs’ on Canadian fertilizer in attempt to prop up American farmers

American farmers are struggling under Donald Trump, and the American president is now turning back to Canada as a means to a financial end. Trump claimed during a roundtable in Washington on Monday that Canadian fertilizer being exported south of the border could be hit with significant levies in the future as he attempts to aid American farmers who have been negatively impacted by months of trade uncertainty created by Trump. During the roundtable, Trump also announced a $12-billion aid package for farmers.

“This relief will provide much-needed certainty to farmers as they get this year's harvest to market and look ahead to next year's crops, and it'll help them continue their efforts to lower food prices for American families,”

New tariffs on Canada

Trump was quoted on Monday, stating: “A lot of (fertilizer) does come in from Canada, and so we'll end up putting very severe tariffs on that, if we have to, because that's the way you want to bolster here.” Many US farms rely on potash fertilizer from Saskatchewan to add potassium to their soil. American purchases make up half of all fertilizer exports from Canada. When Trump imposed his 25% sweeping tariffs on all Canadian exports into the US, he was forced to lower the tariff on fertilizer to 10% after outcry from Republican farmers. The same farmers have publicly supported Trump's tariffs despite their consequences.

According to Fertilizer Canada, “Imposing tariffs jeopardizes the deeply integrated, open trading relationship that is vital to North American agricultural producers,” and that the US “does not have sufficient reserves to meet domestic demand.” Russia is America's second-largest source for potash fertilizer, but Canada accounts for 80% of America's fertilizer imports. The last time Trump tried enforcing tariffs on fertilizer, the price of potash rose from US$303 per short ton to $348 between Jan. 3 and Feb. 28. The price hike impacted farmers across the U.S. who were preparing to plant in the spring.

Ontario Premier Doug Ford wants fertilizer companies to threaten to halt the sale of potash fertilizer to American companies, but Saskatchewan potash producer Nutrien has already announced plans to build a new export facility for global markets in the US, rather than in British Columbia.

Tariffs hurting Americans

Since Donald Trump began trade wars with all of Americas biggest trade partners, farmers have struggled to sell their crops, with China and other countries willing to pay less due to the hefty tariffs levied by Donald Trump, but the prospective aid will be ‘a drop in the bucket' according to farmers effected by the tariffs, with soybean farmers being hit harder than most. “It's just the stupidity of the whole situation that we're in this mess. And why is China not upholding their end of the bargain? Why do we have to have this payment in the first place?” said John Bartman, a soybean farmer from Illinois.

Since Trump's trade war with China began, American farmers have lost more than $12bn, with crop producers losing between $35 bn and $43bn on what they just harvested in 2025. Trump's $12bn payout would put a maximum of $155,000 in the pocket of each individual farmer, which, according to farmers, is “roughly the same amount of money that China would have purchased in a normal year anyway”. China has purchased approximately 15% fewer soybeans from the US while increasing purchases from Argentina and Brazil. Argentina lowered its soybean tax against China in September to ensure the stability of soybean purchases.