Bayer: Glyphosate Shortages Likely Confined to US Following Executive Order

• Bayer reached an agreement this week to pay up to $7.25 billion to resolve tens of thousands of lawsuits claiming glyphosate causes cancer
• The U.S. Supreme Court agreed to hear Bayer's appeal that could sharply limit its liability, after the Trump administration supported Bayer's position that federal regulation should take precedence over state laws
• Bayer is the only company producing glyphosate in the United States, while the U.S. farming sector also imports large volumes of generic copies from China

Summary

Bayer AG confirmed that glyphosate shortages resulting from a U.S. presidential executive order will likely remain confined to the United States and will not impact supply in other countries. The executive order invokes measures to ensure domestic glyphosate supply for American farmers.

Bayer is currently the only company manufacturing glyphosate in the U.S., though the country also imports significant volumes of generic versions from China. In August, Bayer warned it might cease U.S. production of the widely-used herbicide without regulatory changes to limit ongoing litigation exposure.

The German pharmaceutical and chemical company has been battling product liability lawsuits for years, with plaintiffs claiming glyphosate causes cancer. Earlier this week, Bayer reached an agreement to pay up to $7.25 billion to resolve tens of thousands of such lawsuits, primarily brought by private gardening users rather than commercial farmers.

In a significant development, the U.S. Supreme Court has agreed to hear Bayer's appeal, which could substantially limit the company's liability in these cases. The Trump administration supported Bayer's position that federal glyphosate regulations—which generally favor the company—should supersede state laws cited by plaintiffs.

Market Implications: The executive order and Supreme Court decision represent potential relief for Bayer, which has faced sustained pressure from litigation costs. Ensuring U.S. glyphosate supply protects American agricultural productivity while Bayer's legal victories could reduce future liabilities. The multi-billion dollar settlement provides some certainty, though the company's ability to continue U.S. production remains dependent on regulatory and legal developments.