Amid ongoing trade tensions, US President Donald Trump is considering imposing tariffs on rice imports from India, alleging that the country is "dumping" rice into the US market. The announcement was made during a White House event on Monday, where Trump unveiled a fresh aid package for American farmers. He stated, "They shouldn't be dumping," referring to India's rice exports.
Trump's remarks came in response to concerns raised by US farmers who claim that cheaper imports are making it difficult for them to compete. Specifically, American rice farmers believe that countries like India, Vietnam, and Thailand are selling rice at unfairly low prices, causing a drop in domestic rice prices. Meryl Kennedy, founder and CEO of Kennedy Rice Mills and 4 Sisters Rice, reportedly presented Trump with a list of countries, including India, Thailand, and China, accused of "dumping rice" into the US.
During the White House meeting, Trump questioned Treasury Secretary Scott Bessent about India's rice exports, asking, "Why is India allowed to do that? They have to pay tariffs. Do they have an exemption on rice?". Bessent replied that the US was still working on a trade deal with India, to which Trump retorted, "They should not be dumping...They cannot do that".
The potential tariffs on Indian rice are part of a broader effort by the Trump administration to protect American farmers from foreign competition. Trump also hinted at possible tariff measures on fertilizer imports from Canada to encourage local production. "A lot of it does come in from Canada, and so we'll end up putting very severe tariffs on that, if we have to, because that's the way you want to bolster here," he said.
This isn't the first time the Trump administration has taken trade-related action against India. In August, the US imposed 50% tariffs on certain Indian goods, citing trade barriers and India's purchase of Russian oil. Despite these tensions, a US team is currently visiting India for further trade talks, though no major breakthrough is expected.
The prospect of tariffs on Indian rice could have significant implications for Indian rice exporters. India is one of the few countries that has yet to sign a trade deal with the Trump administration, making consensus crucial. The US continues to negotiate trade deals with both India and Canada, however reaching agreements has been a challenge. The US administration's moves to address the agricultural sector's concerns come amidst ongoing economic pressures.
