H.R. 7567 · 119th Congress
Farm Bill 2.0

News · July 25, 2026

Section 301 Tariffs Exempt Fertilizer, Pesticides, Seeds

Trump's Section 301 tariffs of 10 to 12.5% on 60 nations took effect July 24, 2026, but exempt key farm inputs, drawing favorable ag-group response.

#tariffs#farm-inputs#section-301#fertilizer#crop-insurance

TL;DR: The Trump administration imposed Section 301 tariffs of 10 to 12.5% on 60 nations effective July 24, 2026, replacing expiring global levies. Fertilizer, pesticides, and seeds were specifically exempted from the new schedule. Agricultural groups reacted favorably, noting the exemptions ease input costs that feed directly into Farm Bill 2.0 safety-net debates.

Key takeaway

Fertilizer, pesticides, and seeds were exempted from new Section 301 tariffs of 10 to 12.5%, sparing farmers added input costs.

What happened

The Trump administration imposed Section 301 tariffs of 10 to 12.5% on 60 nations, effective July 24, 2026. The new tariffs replace expiring global levies that had been in place previously.

Critically for agriculture, three key farm inputs were carved out of the new tariff schedule: fertilizer, pesticides, and seeds. These exemptions mean that imported supplies farmers depend on will not carry the added 10 to 12.5% cost that now applies to many other goods from the 60 affected nations.

Agricultural groups reacted favorably to the exemptions, according to Agri-Pulse reporting dated July 24, 2026. The exemptions arrive as the Farm Bill 2.0 reauthorization (H.R. 7567) continues to move, and input costs remain a central factor in ongoing safety-net discussions. For background on the bill's current stage, see our timeline and status page.

What it means

For farmers, the exemptions remove a potential added cost on three of the largest recurring input expenses in a crop budget. Fertilizer, pesticides, and seeds together make up a substantial share of per-acre production costs, so a 10 to 12.5% tariff on those items would have pressured margins directly.

Here is how the exemptions break down by input category:

  • Fertilizer: Exempted. Much of the U.S. supply of key nutrients is imported, so a tariff would have raised nitrogen, phosphate, and potash costs.
  • Pesticides: Exempted. Includes crop-protection chemicals used across row-crop and specialty operations.
  • Seeds: Exempted. Covers imported seed stock used in planting decisions.

Input cost relief has direct bearing on commodity price projections and on the farm safety-net debates inside the Farm Bill reauthorization. Lower input costs affect the math on reference prices, crop insurance, and support programs. For how the bill treats those programs, see our full bill summary and our comparison of what is new versus the 2018 Farm Bill.

The favorable ag-group response signals that the exemptions align with the sector's priorities, though the tariffs on non-exempt goods could still affect farm equipment, packaging, and other supply-chain costs not covered by the carve-outs.

What's next

As of July 25, 2026, the tariffs are in effect and the exemptions for fertilizer, pesticides, and seeds are in place. Any changes to the exemption list would likely come through subsequent administrative action, and ag groups are expected to monitor whether additional inputs are added or removed.

The input cost picture is likely to feed into the ongoing Farm Bill 2.0 debate, where reference prices and the farm safety net are contested. Lower or stable input costs could shift arguments about the level of support needed under the bill's commodity title. Readers tracking those provisions can follow the Senate status of the competing draft.

Commodity groups and ag lenders are expected to reassess price projections in light of the exemptions. Farmers who want to weigh in on Farm Bill provisions tied to input costs can reach lawmakers through our contact Congress resources.

Frequently asked questions

What farm inputs are exempt from the new Section 301 tariffs?

Fertilizer, pesticides, and seeds are specifically exempt from the new Section 301 tariffs that took effect July 24, 2026. These three inputs were carved out of the tariff schedule that otherwise applies rates of 10 to 12.5% to goods from 60 nations. The exemptions mean farmers will not pay the added tariff cost on these key production supplies.

How high are the new Section 301 tariffs?

The new Section 301 tariffs range from 10 to 12.5% and apply to goods from 60 nations. They took effect July 24, 2026, and replace expiring global levies that were previously in place. Fertilizer, pesticides, and seeds are exempt from these rates, but many other imported goods from the affected nations now carry the added cost.

When did the Section 301 tariffs take effect?

The Section 301 tariffs took effect July 24, 2026. This makes them one of the most current developments affecting farm input costs. The tariffs of 10 to 12.5% apply to 60 nations and replace previously expiring global levies, with fertilizer, pesticides, and seeds specifically exempted from the new schedule.

How do the tariff exemptions affect the Farm Bill?

The input cost relief from exempting fertilizer, pesticides, and seeds has direct bearing on commodity price projections and farm safety-net debates within the Farm Bill 2.0 reauthorization. Lower input costs affect arguments about reference prices, crop insurance, and support program levels in H.R. 7567. Ag groups and lenders are expected to factor the exemptions into their price and margin projections.

How did agricultural groups react to the tariff exemptions?

Agricultural groups reacted favorably to the exemptions for farm inputs, according to Agri-Pulse reporting dated July 24, 2026. The favorable response reflects that sparing fertilizer, pesticides, and seeds from the 10 to 12.5% tariffs aligns with the sector's priority of keeping production input costs down as farmers plan for the coming crop year.

Sources

  • Agri-Pulse , Ag groups react favorably to Section 301 tariff exemptions, dated 2026-07-24.

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