(Bloomberg) -- The US has put a simmering trade spat over fertilizer imports on ice.
The US International Trade Commission ruled Monday it will not impose tariffs on Russian and Trinidadian imports of urea ammonium nitrate, which is used in liquid fertilizers. The decision came as a surprise as the Commerce Department said earlier this year that tariffs are needed as Russian and Trinidadian imports are sold at less than fair in the US.
Fertilizer prices soared to all-time highs after global supplies were thrown into chaos following Russia’s invasion of Ukraine. The Biden administration has been making efforts to keep food inflation in check and farm groups argued that tariffs will make fertilizer even more unaffordable.
The ruling sent shares of fertilizer producer CF Industries tumbling as much as 4.9% in New York. The company filed a petition for the US to impose duties in 2021.
“This ruling certainly came as a big surprise to the fertilizer industry,” said Alexis Maxwell, an analyst at Bloomberg Intelligence. “This ruling is negative for US nitrogen producers, primarily CF Industries.”
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