Market sources recently stated that in the first quarter of the implementation of the EU Carbon Border Adjustment Mechanism (CBAM), Europe’s ammonia imports declined, as importers actively shunned U.S.-origin supplies to avoid exorbitant carbon costs.

According to data from S&P Global Platts, the EU’s seaborne ammonia imports totalled approximately 717,000 tonnes in Q1 2026, down from 787,000 tonnes in Q4 2025. Notably, U.S. ammonia exports to the EU plummeted from 90,000 tonnes in the previous quarter to 40,000 tonnes. Among the EU’s major ammonia suppliers, the default carbon emission intensity of U.S. ammonia stands at 3.41 tonnes of CO₂ equivalent per tonne of ammonia, ranking the second highest worldwide. Based on current EU carbon prices, importing U.S. ammonia incurs a CBAM cost of around USD 170 per tonne; by contrast, ammonia with a carbon emission intensity of 2.2 carries a carbon cost of merely USD 60.84 per tonne. In addition, U.S. ammonia is subject to a 5.5% import tariff in the EU.

Algeria remains the EU’s top ammonia supplier, accounting for 30% of the bloc’s seaborne ammonia imports. Some U.S. ammonia cargoes have been diverted to Norway, which is exempt from CBAM restrictions and relevant tariffs, with exports to Norway hitting 39,000 tonnes in Q1 2026, compared with zero shipments in the prior quarter. Intra-EU ammonia trade has also registered a sharp increase. On April 14, Platts assessed the Northwest Europe ammonia CIF price at USD 875 per tonne. Market participants noted that steep carbon costs have eroded the price competitiveness of U.S. ammonia, driving a gradual shift in trade flows toward low-carbon emission suppliers.