Tariff Shifts Could Impact Retail Supply Chains: What U.S. Ag Retailers Need to Know
September 15, 2025 In the latest report from CropLife’s sister brand AgriBusiness Global, Jim DeLisi, Chief of Fanwood Chemical, joined Content Specialist Lauren Milligan to break down urgent changes in tariff policy and their potential ripple effects across the global crop input supply chain. With new revisions to Annex II, emerging complexities in India-related tariffs, and a fast-tracked Supreme Court case on the horizon, these developments could shape pricing and availability for U.S. ag retailers heading into the next season.
The conversation was the second in a series focused on global trade and tariff updates. As ag retailers across the country navigate tight supply margins, ongoing global conflicts, and regulatory uncertainty, these insights offer critical context for procurement planning and risk assessment.
Here are five key takeaways that U.S. ag retailers should know:
1. New Agrochemical Additions to Annex II—Without Explanation
Three agrochemicals — triflumizole, diflubenzuron, and cymoxanil — were unexpectedly added to the Annex II tariff list in a surprise Friday proclamation.
“Why they were added? Nobody knows. Who requested them? Again, no one knows. This whole process is a bit of a mystery,” said DeLisi.
Retailers should closely monitor updated tariff lists to understand potential impacts on formulation availability and pricing downstream.
2. Watch Annex III—Pharma Carve-Outs May Signal Future Enforcement Challenges
Annex III, attached to the update but not yet in effect, carves out exemptions for pharma-related chemicals — once a trade deal is signed.
“There are a large number of products listed as pharma… but only if they’re used for pharmaceuticals,” DeLisi noted. “I have no idea how customs is going to enforce different tariffs on an identical product used in different industries.”
Retailers should prepare for potential product classification disputes or sourcing confusion as enforcement mechanisms are developed.
3. India Tariffs Are Climbing—and Could Rise Again
India now faces both a 25% reciprocity tariff and an additional 25% tariff linked to Russian oil. This is a sharp escalation from the previous 10%.
“You have to treat those as three separate lines in any spreadsheet you prepare,” said DeLisi, referring to the complex tariff coding now required for tracking.
Retailers sourcing generic AI or intermediates from India may see price volatility or delayed shipments if further trade complications arise.
4. Brazil and Others May Be Next in Line for Russia-Linked Tariffs
Recent Russian escalations in Ukraine are driving the U.S. administration to consider broader sanctions—including additional tariffs.
“Turkey and Brazil are probably the key candidates to get increased tariffs based on the way Russia is bombing Ukraine right now,” DeLisi warned.
Retailers should stay alert for fast-moving developments that may affect import costs from key sourcing regions.
5. A Supreme Court Ruling on Tariffs Could Trigger Mass Refunds
The high court is fast-tracking a case that challenges the legality of certain tariff actions — most notably, reciprocity and fentanyl-related tariffs.
“If the case goes down… it’s billions of dollars — much of it paid by agrochemical companies,” DeLisi said. “They’re going to make you jump through some hoops to get those refunds.”
Retailers with direct import exposure or long-term supply contracts should review documentation now in case refund claims become necessary.
View the full discussion with Jim DeLisi at Agribusiness Global.
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