Nutrien will survive a tariff fight

Article Excerpt

The U.S. government has threatened to impose a 10% tariff on potash fertilizer imports from Canada, which now supplies 85% of its needs. U.S. potash reserves are also much smaller, so a prolonged tariff fight seems unlikely. Even if the tariffs remain in place and U.S. potash demand falls, Nutrien could increase its shipments to China and Brazil. NUTRIEN LTD. $73 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 489.3 million; Market cap: $35.7 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.3%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers, including potash, nitrogen and phosphate. It ships about 27 million tonnes annually. Nutrien also sells seeds, fertilizers and agricultural products to farmers through some 1,900 stores spread across the Western Hemisphere and Australia. That business accounted for 70% of the company’s its 2024 revenue, which helped offset its exposure to volatile bulk fertilizer prices. Overall revenue jumped 81.2%, from $20.91 billion in 2020 to $37.88 billion…