Source: Independent Institute
by Scott Semet
“The EU is poised to shoot itself in the foot yet again. To punish Russian misdeeds and reward domestic producers, import tariffs on Russian fertilizer are to be increased dramatically. Cost-benefit analysis reveals that the pain will be limited because fertilizer export revenue is a minuscule share of Russian GDP. However, rising fertilizer prices in Europe will drive food prices up, fueling societal unrest. Rather than using subsidies and tariffs to worsen market distortions, hurting all stakeholders, EU policymakers should tackle the root cause of the problem, namely the lack of inexpensive Russian gas, in turn caused by poor political decisions.” (02/10/25)
https://blog.independent.org/2025/02/10/sowing-the-seeds-of-a-crisis-with-fertilizer-tarriffs