Trump Threatens Tariffs on India Over Rice Dumping in US Markets
New York/Washington, December 9. US President Donald Trump has asserted that India should not dump rice into American markets at cheap prices and stated that he intends to deal with the matter effectively. Trump warned that this issue could be easily resolved through the imposition of tariffs, suggesting a swift regulatory approach to protect domestic agriculture.
The President made these remarks during a roundtable meeting held on Monday at the White House with representatives from the farming and agriculture sectors, alongside key cabinet members including Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins. As per agency report, during the session, Trump also announced federal aid amounting to 12 billion dollars to support farmers. The conversation shifted to international trade when Meryl Kennedy, who operates her family agricultural business Kennedy Rice Mill in Louisiana, informed Trump that rice growers in the southern part of the country are struggling significantly because other nations are dumping rice in the US market by selling it at extremely low prices.
When the President inquired about which specific countries were responsible for this situation, Kennedy identified India and Thailand. She also mentioned that China is dumping rice in Puerto Rico, noting that while Puerto Rico used to be the largest market for American rice, domestic producers have not shipped rice there for several years. Kennedy acknowledged that tariffs imposed by the administration are effective but suggested they need to be increased further. Turning his attention to Treasury Secretary Scott Bessent, Trump questioned why India is permitted to engage in such practices and asked if they receive any exemptions on rice. Bessent clarified that there are no exemptions and informed the President that the administration is currently negotiating a trade deal with India.
Kennedy further mentioned that there is an ongoing case against India at the World Trade Organization regarding this issue. In response, Trump remarked that the situation could be handled very easily. He stated that the problem would be resolved quickly by imposing tariffs on countries shipping goods illegally, asserting that the issue could be solved in a day, although he noted the necessity of winning a lawsuit in the Supreme Court.
Data from the Indian Rice Exports Federation indicates that India is the largest rice producer in the world, holding a 28 percent share of the global market. It is also the top exporter, contributing 30.3 percent to global exports in the 2024-25 period. Varieties exported by India, such as Sona Masoori, are particularly popular in markets like the US and Australia. The report further notes that Trump has imposed a 50 percent tariff on India, which is described as the highest in the world, and this includes a 25 percent tariff on oil purchases from Russia.
