Trump Invokes Defense Act For Monsanto Chemicals: Bayer, Agribusiness ETFs In Focus On New Critical Mineral Status For Phosphorus

In a large determination to solidify the America First concern strategy, President Donald Trump signed an enforcement bid connected Feb. 18, mobilizing the Defense Production Act (DPA) to unafraid the home proviso of elemental phosphorus and glyphosate-based herbicides.

The President officially designated elemental phosphorus arsenic a “scarce worldly that is captious to nationalist defence and security,” citing its pervasive relation successful subject readiness and cultivation productivity.

The U.S. relies connected a azygous home producer—Bayer AG (OTC:BAYRY), which acquired Monsanto successful 2018, leaving the defence concern basal and nutrient proviso susceptible to overseas actors.

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By invoking the DPA, the medication aims to curb dependence connected imports, peculiarly from China and Russia, which predominate planetary production.

The bid places Bayer's U.S. operations, often referred to arsenic its Monsanto division, nether a protective national umbrella.

The directive specifically instructs the Secretary of Agriculture to guarantee that nary authorities regularisation puts the “corporate viability of immoderate home producer” astatine risk.

Bayer has agelong been embroiled successful litigation implicit its glyphosate-based Roundup. The company’s Monsanto Unit precocious projected paying $7.25 cardinal to settee lawsuits claiming that its weed slayer Roundup was causing cancer, arsenic per a property merchandise connected Tuesday.

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Following the announcement, agribusiness ETFs similar the VanEck Agribusiness ETF (NYSE:MOO) and iShares MSCI Global Agriculture Producers ETF (NYSE:VEG) whitethorn spot accrued capitalist involvement arsenic the assemblage shifted toward a government-protected status.

“Ensuring robust home elemental phosphorus mining… is cardinal to American economical and nationalist security,” the bid stated.

Beyond farming, phosphorus is simply a “key input” for defence technologies, including fume and illumination devices, semiconductors for radar, and modern lithium-ion batteries for limb systems.

The bid delegates statesmanlike authorization to the Secretary of Agriculture, acting successful consultation with the Secretary of War, to prioritize contracts and allocate materials indispensable to “ensure a continued and capable supply” of these captious inputs.