Tariffs, Trade, and Annex II: 4 Key Updates Agrochemical Suppliers Need to Know
11 September 2025 As global trade tensions intensify and regulatory frameworks shift, staying informed is more critical than ever for agrochemical suppliers. In the second installment of AgriBusiness Global’s ongoing series on trade and tariffs, Content Specialist Lauren Milligan sat down with Jim DeLisi, Chief of Fanwood Chemical, to unpack the latest developments impacting international commerce.
DeLisi, a long-time expert in regulatory and trade matters, shared detailed insights on recent Annex II revisions, the evolving tariff landscape with India, and a pending Supreme Court case that could fundamentally reshape tariff enforcement in the U.S. Here are four key takeaways from the conversation that buyers and sellers in the supply chain need to understand now:
1. Annex II Revisions Include Surprise Agrochemical Additions
The White House issued an unexpected proclamation last Friday revising the U.S. Annex II list — adding three agrochemicals: triflumizole, diflubenzuron, and cymoxanil.
“It was a complete surprise… I had just finished writing my monthly update saying there were no changes, and then this happened,” DeLisi said.
The additions raise more questions than answers, with no public explanation as to who requested the inclusions or why these specific chemicals were added. Suppliers should prepare for pricing and sourcing impacts, especially as new rules under Annex III — which includes pharma-related exemptions—may soon come into play once trade deals are signed.
2. India Faces Complex, Stacked Tariffs
What was once a straightforward tariff structure with India has become increasingly layered. Suppliers must now account for:
- A base tariff
- A 25% reciprocity tariff
- A 25% Russia-related oil tariff
“You have to treat those as three separate lines in any spreadsheet you prepare,” said DeLisi. “The Russia tariffs could go up, go down, or disappear.”
Free trade talks with India are showing signs of life again, which could lead to recalibrated rates. However, as DeLisi emphasized, nothing is guaranteed—and the geopolitical situation, especially involving Russia and Ukraine, may add more volatility to the equation.
3. Brazil and Others May Face a Steep 50% Tariff
In response to Russia’s escalation in Ukraine, the U.S. is signaling that additional countries—including Brazil, Turkey, and China — could soon be subject to new Russian oil-related tariffs. Brazil, in particular, is vulnerable to a 50% tariff, an unprecedented move that could disrupt supply lines significantly.
“Turkey and Brazil are probably the key candidates to get increased tariffs based on the way Russia is bombing Ukraine right now,” DeLisi warned.
While still speculative, suppliers should prepare contingency plans for sourcing and pricing if the U.S. government announces new trade actions in the coming weeks.
4. Supreme Court Case Could Trigger Massive Refunds
A fast-tracked Supreme Court ruling on the legality of certain tariffs (notably the reciprocity and fentanyl-related tariffs) is expected before the end of the year. If the Court rules against the administration, it could force the Treasury to issue billions of dollars in refunds—much of it to agrochemical companies.
“Make sure you keep your records in good order,” DeLisi cautioned. “They’re going to make you jump through hoops to get those refunds.”
The ruling will not impact Section 301 or 232 tariffs (such as those recently applied to copper), but it could provide significant relief and reset expectations for other sectors. Suppliers should ensure internal documentation is ready to support any potential refund claims.
You can view Parts 1 and 2 of the AgriBusiness Global Report. Stay tuned to AgriBusiness Global for continued coverage on tariffs, trade agreements, and their impact on the global crop input industry.
Get The Newsletter Today!
