China and the U.S. are the foremost exporters of pesticides in the global market. In 2023, China accounted for 21.7% of the global market for pesticides, while the U.S. held an 11.5% share, China's market share in the global pesticide export market was 21.7%, while the U.S. was 11.5%, according to the Observatory of Economic Complexity (OEC). In April 2025, the U.S. imposed new tariff guidelines on pesticides which directly impacted the global pesticide business and the leading exporters. Following China and the United States, France, Germany, India, and Spain are significant contributors to the global pesticide export market. Due to the changing trade policies imposed in April 2025, France, Germany, India, and Spain have drawn the attention of pesticide buyers and created new opportunities in global trade.
The U.S.-China trade war has disrupted the competitive landscape of the global pesticide market. Global pesticide producers are either deliberately expanding their production capacity in Southeast Asian countries or moving their production facilities to these nations to avoid or reduce the tariffs. To enhance the profit-margin ratio and appealing prices, Chinese companies are heavily investing in Southeast Asian countries and expanding their global operations from these countries in the pesticide industry.
Major announcements pertaining to the pesticide industry during April and May 2025 are highlighted below.
This tariff war has intensified trade uncertainties and left companies struggling for clarity on upcoming policy shifts.
Farmers are the end-use consumers of pesticides. Due to the trade policies in April 2025, the cost structure of pesticides changed quite rapidly and dramatically. However, the buying behavior and purchasing capacities of farmers are unchanged. To maintain the farming stream and agricultural yield, China and the U.S. are taking the initiative and reducing the import duty on pesticides. The updated U.S. tariff policies are directed from May 14, 2025. This policy helps to reduce the cost structure of pesticides for the next 90 days.
China and the U.S. are the top exporters of pesticides in the global market. Due to the change in trade policies in April 2025, the key leading pesticide importers are strategically switching their trade partners to minimize their dependence on China and the U.S. The changes in trade policies have negatively impacted the trade relations between China and the United States. Both countries aim to maintain their significant positions in the global pesticide market.
Therefore, China and the U.S. implemented a 90-day program started from May 14, 2025, aimed at maintaining their positions in the pesticide industry and attracting the attention of pesticide importers.
Manufacturers are switching their trade partners beyond China and the United States due to the volatile market conditions and emphasizes on domestic production. The key global public companies are hunting for new locations for pesticide production houses that have lenient rules on pesticide consumption and production.
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