US President Donald Trump has used the Defense Production Act to classify domestic production of phosphorus and glyphosate as safety-critical.
• White House classifies glyphosate and phosphorus as essential to national security and food supply
• Executive order requires US Department of Agriculture to secure domestic production capacity
• Bayer shares react with significant price jumps
In a far-reaching decision, US President Donald Trump signed an executive order on February 18, 2026 declaring the production of elemental phosphorus and glyphosate-based herbicides a national defense priority. Citing the Defense Production Act of 1950 (DPA), the White House stated that the availability of these substances was essential to military readiness and security of the U.S. food supply. Phosphorus not only acts as a basis for agricultural chemicals, but is also a critical component in semiconductor production and in modern lithium-ion batteries for weapon systems. The regulation explicitly states that dependence on imports – more than 6,000,000 kilograms of elemental phosphorus are imported every year – represents a security gap.
Protectionism as a protective shield for Bayer
For the Leverkusen-based DAX group Bayer, this decree marks a turning point in the US strategy. The executive order emphasizes that there is only one significant producer of elemental phosphorus and glyphosate in the United States, whose continued existence is “central” to national security. The document thus indirectly refers to the capacities of Monsanto (Bayer), which operates mines in Soda Springs (Idaho) and production facilities in Iowa and Louisiana. “The Secretary of Agriculture shall ensure that no order or regulation under this section jeopardizes the economic viability of any domestic producer,” said Donald Trump’s directive to the US Department of Agriculture. This gives Bayer a de facto guarantee of the existence of its controversial core division in the US market.
A Bayer spokesman said the regulation “emphasizes the urgent need for U.S. farmers to have access to important domestically produced crop protection products such as glyphosate.” The regulation will be followed.
This political support comes at a strategically critical time, as Bayer has simultaneously pushed forward a comprehensive collective settlement to resolve the years-long Roundup legal disputes in the USA. According to reports, a new proposal calls for payments of up to $7.25 billion over 21 years to finally cover the legal risks for the subsidiary Monsanto. Donald Trump emphasized in his justification for the executive order: “The lack of access to glyphosate-based herbicides would critically endanger agricultural productivity and increase pressure on the domestic food system.” This official recognition as an “indispensable tool” of the nation could massively strengthen the company’s legal position in future proceedings and before the Supreme Court.
The International Agency for Research on Cancer, part of the World Health Organization, classified the active ingredient contained in Roundup as “probably carcinogenic to humans” in 2015; Other WHO institutions took a different view, and European institutions also did not follow this critical classification. Bayer has always rejected the suspicion that glyphosate is carcinogenic. “Glyphosate is a safe and important tool for farmers in the US and around the world,” said Bayer CEO Bill Anderson recently. Scientists and regulatory authorities have confirmed this “truth” internationally.
No negative consequences for future producers
According to the regulation, companies should be assured that they will not suffer any negative consequences from production. Specifically, it states: “Accordingly, the Secretary (of Agriculture) shall ensure that no order, rule or regulation issued pursuant to this section jeopardizes the viability of any domestic producer of elemental phosphate or glyphosate-based herbicides.”
Elemental phosphate is also an important starting material for the production of glyphosate-based herbicides. These played a critical role in maintaining the U.S. agricultural advantage by enabling farmers to produce food and livestock feed efficiently and cost-effectively, it said.
Bayer stock reaction: Volatility after the liberation strike
Bayer shares cannot benefit from the new developments on Thursday. After the stock temporarily rose by over seven percent in XETRA trading on Tuesday and marked a new 52-week high, a sell-off (-7 percent) began on Wednesday. On XETRA, the share was temporarily trading at 45.50 euros on Thursday, which corresponds to a minus of 0.69 percent compared to the previous day’s close. Things were still up in pre-market Tradegate trading. Market observers spoke of a “politically induced upswing” but warned that the settlement is still pending approval by the St. Louis court.
Editorial team finanzen.net / WASHINGTON (dpa-AFX)
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