(Bloomberg) -- China intends to slap duties on U.S. shipments of some fertilizers as part of a $60 billion ramp up in a trade war between the two nations. The good news for U.S. producers is the move is unlikely to have any significant impact on their business.
It's “no concern,” RBC Capital Markets analyst Andrew Wong said in an email. “China mostly only imports potash for fertilizer use, and that comes from Canada.”
The U.S. is a very small fertilizer exporter and very few, if any, American shipments go to China, Wong said.
Mineral or chemical fertilizers containing elements of nitrogen, potassium and phosphorus from the U.S. will be taxed at as much as 25 percent. Animal or vegetable fertilizers produced by mixing or chemical treatment are also on the tariff lists that were disclosed by China on Friday.
Shares of Plymouth, Minnesota-based Mosaic Co., the largest producer of phosphate, rose as much as 2.2 percent, while CF Industries Holdings Inc. fell 1 percent at 1:36 p.m. in New York. Mosaic couldn't immediately be reached for comment. CF declined to comment.
To contact the reporter on this story: Jen Skerritt in Winnipeg at jskerritt1@bloomberg.net
To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Millie Munshi, Steven Frank
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