The Trump administration is turning to other sources of fertilizer due to the ongoing shipping challenges caused by the Iran war.
White House economic advisor Kevin Hassett said the administration is looking to Venezuela and possibly Morocco.
“We’ve established licenses for Venezuela to produce more fertilizer, calling it an insurance policy against disruption,” Hassett told CNBC’s “Squawk Box” program. “I’m not saying we can eliminate what disruption there is so far, but we can minimize it.”
Reuters also reports fertilizer supplies have shrunk as the U.S.-Israeli war against Iran cut off critical nitrogen fertilizer supplies from the Gulf to the world’s farmers, sending prices spiking by more than a third in recent weeks.
Bloomberg said the U.S. currently has duties in place on Moroccan phosphate, and the duties are now under review.
“Pleas from U.S. farm groups to remove those fees that ramped up after the war began in Iran,” Bloomberg reported.
