Canada's Nutrien says tariffs will lead to higher costs for US farmers (updated)

Nutrien

20/02/2025 17:20

(Adds company preparations for tariffs implementation and
potash availability in paragraphs 4 and 5; optimism about U.S.
fertilizer use in 2025 in paragraph 6; implications of possible
end of war in Ukraine on Russian and Belarusian potash
competition in paragraphs 8 to 11)
    By Mrinalika Roy and Ed White
       Feb 20 (Reuters) - Fertilizer producer Nutrien  NTR.TO 
said on Thursday U.S. President Donald Trump's proposed tariffs
on Canadian imports will increase costs for American farmers.
    Trump plans to place a 25% tariff on Canadian imports, which
will take effect in March after granting a 30-day extension.
    "Frankly, costs of this (tariff) will be borne by the U.S.
farmers...the U.S. farmers will likely feel the impact after the
spring planting season," CEO Ken Seitz said during a
post-earnings conference call.
    Nutrien has assembled a team from various departments to
manage tariff-related operations, including duty collection.
    Seitz said U.S. farmers will be able to get fertilizer for
the upcoming spring planting season.
     Weather problems in late 2024 prevented some fertilizer
applications U.S. farmers planned to do, officials said, leaving
more needed in 2025. U.S. farmers are expected to plant 90+
million acres of fertilizer-hungry corn this spring, leaving the
company optimistic about its 2025 U.S. demand outlook.
    The potential end of the war between Russia and Ukraine
isn't seen as a threat to 2025 Nutrien sales, Seitz said, since
Russian potash has already been reaching the market and
Belarusian supplies, presently under sanction by the European
Union and others, will have trouble reaching markets through
Europe. 
    Belarus has been cut off from Lithuania's main port. It will
have trouble getting access regardless of sanctions, and will
probably have to move through Russia to reach world markets.
Belarusian idle production won't come back fast.
    "We think that happens slowly over time," said Seitz.
    
  

 (Reporting by Mrinalika Roy in Bengaluru; Editing by Devika
Syamnath an dLisa Shumaker)
 ((mrinalika.roy@thomsonreuters.com;))