According to European producers, the EU's planned tariffs on Russian fertilizer exports come "too late and too weak" to protect the industry from existential market distortions. While gas prices remain high in Europe, Russia is flooding the market with cheap fertilizer—financed by gas exports that are no longer allowed to flow into the EU after the attack on Ukraine.

The European Commission proposed on Tuesday to gradually increase tariffs on certain fertilizer imports from Russia and Belarus from the current 6.5 percent to up to 50 percent over the next three years. The plan still needs to be approved by the European Parliament and the Council of EU Member States. The regulation was specifically designed to ensure that countries with strong agricultural sectors like France and the Netherlands are not overly burdened.

For the European fertilizer industry, the measure comes too late.

Fertiglobe CEO Ahmed El-Hoshy also warned of unequal competitive conditions: "European producers have higher energy, labor, and regulatory costs - eventually, the system will collapse." While the EU only slowly agrees to tariffs, the US government is deliberately using the situation to support its farmers with cheap imports.

The biggest problem remains the cost difference in natural gas, the main raw material of the industry. "Gas prices in Europe are 345 percent higher than in the USA – and even more drastic compared to Russia," says Holsether. He sees the risk that European companies will gradually relocate their production to North America. "Once fertilizer plants relocate, they do not return – this is not a restaurant that simply reopens after a crisis.

The EU Commission argues that the new tariffs are necessary to protect against Russian blackmail attempts and to ensure food security in the EU. The import duties are initially set at 13 percent and are expected to rise to 50 percent within three years.

Industry representatives, however, are calling for a tougher approach. "The planned tariffs are a step in the right direction, but not ambitious enough," said Leo Alders, president of the Fertilizers Europe Association. He advocates for an entry tariff of at least 30 percent, which is to be increased further every six months.