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‘Too Cheap For US’: Trump Eyes Tariffs On Indian Rice – Will Farmers Suffer
‘Too Cheap For America’: Trump Threatens New Tariffs On Indian Rice – Could This Hit Farmers Hard?
Trump accuses India of flooding the US market with low-priced rice and warns that extra tariffs are now under review, raising concerns for farmers and exporters on both sides.
New Delhi: US President Donald Trump has said that his administration is considering extra tariffs on rice imported from India and on fertiliser coming from Canada. Cheaper foreign supplies, according to him, are affecting the earnings of American farmers, who say their produce is unable to fetch fair prices in local markets.
He said the administration is weighing additional tariffs on rice entering the United States from India, along with possible duties on fertiliser imported from Canada. Inexpensive farm products coming into the American market, he stated, are preventing US farmers from receiving fair prices for their crops.
“Countries like India, Vietnam and Thailand are selling rice in America at very low prices, and it is affecting our farmers' earnings,” Trump said.
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He described this as “dumping” and asked Treasury Secretary Scott Bessent if India enjoys any exemptions in the rice trade. Bessent responded that trade discussions between the two nations are still underway.
The US president also raised the possibility of tough duties on fertiliser from Canada. He said a large portion of the fertiliser used in the United States comes from Canada, and if the prices continue to fall, “we will put strict tariffs on it”.
Canada remains America's largest supplier of potash. The sector has enjoyed protection under existing trade arrangements, but any new duties could push costs higher for farmers already struggling with rising expenses and inflation.
The United States recently added potash and phosphate to its list of critical minerals to secure supply lines, but many farmers say they are still dealing with high input costs.
Tension has also grown with Mexico. Trump warned of an additional 5% tariff on Mexican goods, accusing Mexico of failing to supply water as per an 80-year-old agreement. Washington has repeatedly argued that Mexico has not met its commitments under that treaty.
Trump unveiled a $12 billion relief package designed to support American farmers impacted by falling crop prices and the ongoing trade disputes with countries such as China. The money will be transferred directly to farmers so they can manage their harvests and prepare for the next planting season.
Soybean and sorghum growers have been hit the hardest. Their biggest buyer, China cut back heavily on US soybean purchases this year after imposing new duties in response to American tariffs, causing farm incomes to fall dramatically.
Dumping occurs when a country sells goods abroad at a price so low that local producers cannot compete. The market then fills with cheaper imported products, pushing domestic businesses into losses. Over time, local industries lose ground to foreign imports.
If Trump approves additional tariffs on Indian rice, shipments from India to the United States will instantly become more expensive. This would raise retail prices for consumers in the United States who depend on Indian rice, while exporters and farmers in India could face reduced demand and financial losses.
India is the world's largest rice exporter, accounting for nearly 40% of global exports. Cheap domestic production and large reserves allow the country to ship millions of tonnes every year. In the 2022-23, New Delhi exported around 15 million tonnes of rice.
India primarily exports two categories (basmati and non-basmati). In 2023, West African nations were the biggest buyers of non-basmati rice, while countries in the Middle East, including Saudi Arabia, Iran and Iraq, bought the highest quantities of basmati.
According to World Bank data, India exported 281,873 tonnes of rice to the United States in 2023.
Trump has already levied a total of 50% tariffs on India. Of this, 25% was added specifically due to India's purchase of Russian oil. Under his “America First” policy, the US president has previously imposed duties on several foreign products to protect US industries.
Media reports state that India does not export huge volumes of rice to the United States compared to other markets. Because of this, any new tariff may not hit the entire Indian rice sector, but exporters who rely on the United States will face challenges. India may then have to look for new markets to absorb those supplies.
Source: ZeeNews
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