EU lifts fertilizer duties to ease Hormuz supply crisis
The European Council will temporarily lift customs duties on urea and ammonia to mitigate rising costs caused by the Strait of Hormuz closure. While Middle Eastern imports represent a small share of EU supply, global prices have risen as countries seek alternatives. The measure excludes products from Russia and Belarus.
The Council of the EU will suspend customs duties on urea and ammonia for one year to mitigate fertilizer price spikes. Global prices jumped following the near total closure of the Strait of Hormuz, a shipping route along Iran's coast. Lowering these 5.5% to 6.5% tariffs protects food security as global rice and wheat supplies tighten.
### Supply Chain Pressures and Price Spikes The Strait of Hormuz handles one-third of global fertilizer trade. While the EU imports only 3% of its ammonia from the Middle East, global competition for alternative sources drove prices higher. The U.N. Food and Agriculture Organization warned in April that a prolonged blockade could trigger an agrifood catastrophe.
