Proman welcomes removal of US tariffs

PROMAN, the country’s sole producer of Urea Ammonium Nitrate (UAN) and second largest exporter of UAN to the United States (US), has welcomed the US government’s decision to remove tariffs imposed on exports of fertilisers to the US.

“The removal of the tariffs supports one of TT’s leading exports, and further reinforces the country’s position as a stable, reliable supplier within the global fertiliser and energy value chains,” the company said in a media release on November 18.

Managing Director Anand Ragbir described the development as a significant boost for TT’s UAN export market.

“The removal of these tariffs supports price stability and affordability for farmers while safeguarding critical export revenues for our country,” he said.

The company said as the largest tenant and employer on the Point Lisas Industrial Estate, Proman stands as one of the top ten fertiliser producers.

Proman supplies products such as UAN to farmers worldwide, which ensures healthy plant growth and crop yields. The US remains TT’s single largest trading partner and Proman’s largest export market for UAN.

US president Donald Trump announced reciprocal tariffs on April 2 which led to TT being subject to a 15 per cent tariff on several TT items excluding energy exports to the US.

Trump modified the scope of the reciprocal tariffs on September 5, adding certain goods to a list of exempted goods.

On November 14, Trump added a significant number of agricultural products to the list of exempted goods. A fact sheet on the White House’s website said Trump thought it was appropriate to further modify the scope of the reciprocal tariffs, specifically qualifying agricultural products, specifically certain food not grown in the US.

The fact sheet said the modifications were made, given substantial progress in reciprocal trade negotiations, current domestic demand for certain products and current domestic capacity to produce certain products.

The list of items exempted include:

*coffee and tea

*tropical fruits and fruit juices

*cocoa and spices

*bananas, oranges, and tomatoes

*beef

*additional fertilisers

The fact sheet noted that some fertilisers have never been subjected to reciprocal tariffs.

A Reuters report on the matter on November 15 said Trump's decision to roll back the tariffs would affect more than 200 food products.

Highlighting data from the US’ consumer price index data in September, Reuters said there were increases in the prices of ground beef (13 per cent), steaks (17 per cent) bananas (seven per cent) and tomatoes (one per cent), despite the US president’s insistence that there was “virtually no inflation.”

Reuters said increases of ground beef and steaks were the highest in three years, dating back to when inflation was nearing a peak under Joe Biden.