BUZZ-Scotiabank sees Trump's tariffs on imports of Canadian potash weighing on fertilizer companies

Scotiabank says U.S. President Donald Trump's tariffs on Canadian potash imported to U.S. could meaningfully alter trade flow and producer economics

Brokerage says "the 25% tariffs on Saskatchewan potash could enable Russia, Israel and Jordan to challenge the market share long held by the Canadian producers"

However, brokerage notes that distribution networks and logistics systems built by Nutrien NTR.TO and Mosaic MOS.N cannot be replicated overnight

NTR supplies nearly half of the U.S. potash, and one-third comes from MOS, per Scotiabank estimates

Notes that while some potash benchmarks have moved higher on inventory build in anticipation of higher prices, farmers are at risk of pushing back on higher prices as it is a lower ranked crop input, which would weigh on fertilizer companies