Brussels has announced that it has temporarily suspended tariffs on some imports of urea and ammonia in a bid to offset any increase in fertiliser costs from the Carbon Border Adjustment Mechanism (CBAM).
European Commissioner for Trade Maroš Šefcovic announced the news on Wednesday evening, noting that while fertiliser prices have stabilised they are 60% higher than they were in 2020.
“This is not sustainable. That is why the Commission is putting forward an additional targeted response. We will propose to temporarily suspend the remaining most-favoured nation (MFN) tariffs on urea, ammonia, and, where necessary, other fertilisers.
“Robust safeguards will ensure that this relief is well-targeted and that its benefits flow directly to farmers.
“This measure can enter into force swiftly in 2026 and its impact would broadly offset the costs linked to the Carbon Border Adjustment Mechanism (CBAM) which took effect this January.”
He outlined that the tariffs are 6.5% on urea and 5.5% on ammonia for most-favoured nations.
Potential for CBAM suspension
He said the Commission will also issue guidance on a new measure proposed by the Commission last December, which needs to be approved by co-legislators, which would allow for the temporary suspension of CBAM on certain goods such as fertiliser should market monitoring indicate unforeseen circumstances.
“We will continue to monitor fertiliser prices closely including through the fertiliser market observatory,” he said.
The Commissioner also confirmed that an EU fertiliser action plan will be published in the second quarter of 2026, which he said will “focus on greater market transparency and on scaling up recycled nutrients and alternative inputs supported by regulatory adjustment where needed”.
“Trade is a powerful way to cut costs and free trade agreements are a strategic necessity. Let me be absolutely clear, EU agriculture is a global export powerhouse,” he said, outlining that exports hit €235bn in 2024, a 3% increase year-on-year.
“Farmers concerns are not an afterthought in our trade policy – they are central,” he said.
Taxes associated with CBAM came into effect on 1 January 2026. CBAM has been in place for two years, but taxes were not applied until this year.
From 1 January 2026, CBAM placed a tax on fertiliser imported from outside of the EU based on the levels of emissions from that fertiliser's production. However, real figures are not available for these plants and so default figures are being used plus a mark up of 1%.
CBAM is estimated to add €44-58/t to urea in its first year and this is set to increase all the way out to 2034 as allowances reduced and carbon demand increased.
Read about the impact of CBAM here.
Read more
What is the CBAM and how will it impact your farm?
Issues with CBAM continue as tax nears
Five EU policies for farmers to watch in 2026
Brussels has announced that it has temporarily suspended tariffs on some imports of urea and ammonia in a bid to offset any increase in fertiliser costs from the Carbon Border Adjustment Mechanism (CBAM).
European Commissioner for Trade Maroš Šefcovic announced the news on Wednesday evening, noting that while fertiliser prices have stabilised they are 60% higher than they were in 2020.
“This is not sustainable. That is why the Commission is putting forward an additional targeted response. We will propose to temporarily suspend the remaining most-favoured nation (MFN) tariffs on urea, ammonia, and, where necessary, other fertilisers.
“Robust safeguards will ensure that this relief is well-targeted and that its benefits flow directly to farmers.
“This measure can enter into force swiftly in 2026 and its impact would broadly offset the costs linked to the Carbon Border Adjustment Mechanism (CBAM) which took effect this January.”
He outlined that the tariffs are 6.5% on urea and 5.5% on ammonia for most-favoured nations.
Potential for CBAM suspension
He said the Commission will also issue guidance on a new measure proposed by the Commission last December, which needs to be approved by co-legislators, which would allow for the temporary suspension of CBAM on certain goods such as fertiliser should market monitoring indicate unforeseen circumstances.
“We will continue to monitor fertiliser prices closely including through the fertiliser market observatory,” he said.
The Commissioner also confirmed that an EU fertiliser action plan will be published in the second quarter of 2026, which he said will “focus on greater market transparency and on scaling up recycled nutrients and alternative inputs supported by regulatory adjustment where needed”.
“Trade is a powerful way to cut costs and free trade agreements are a strategic necessity. Let me be absolutely clear, EU agriculture is a global export powerhouse,” he said, outlining that exports hit €235bn in 2024, a 3% increase year-on-year.
“Farmers concerns are not an afterthought in our trade policy – they are central,” he said.
Taxes associated with CBAM came into effect on 1 January 2026. CBAM has been in place for two years, but taxes were not applied until this year.
From 1 January 2026, CBAM placed a tax on fertiliser imported from outside of the EU based on the levels of emissions from that fertiliser's production. However, real figures are not available for these plants and so default figures are being used plus a mark up of 1%.
CBAM is estimated to add €44-58/t to urea in its first year and this is set to increase all the way out to 2034 as allowances reduced and carbon demand increased.
Read about the impact of CBAM here.
Read more
What is the CBAM and how will it impact your farm?
Issues with CBAM continue as tax nears
Five EU policies for farmers to watch in 2026
SHARING OPTIONS