“Trump Threatens Tariffs on Indian Rice Ahead of Trade Talks”

“US doubles duties to 50%; Indian exporters brace for limited impact but rising tensions.”

The US Position

• President Donald Trump accused India of “dumping cheap rice” into the American market.
• He announced a 25% additional tariff on Indian agricultural imports, raising total duties to 50%.
• Trump framed the move as part of his “America First” strategy, promising it would protect US farmers.
• A $12 billion aid package was also unveiled to support domestic producers hit by global competition.

India’s Response

• India exported 234,000 tonnes of rice to the US in FY24, less than 5% of its basmati exports, so the direct impact is limited.
• The Indian Rice Exporter Federation (IREF) said demand from the US will remain steady despite higher duties.
• However, shares of major exporters like LT Foods, KRBL, and GRM Overseas fell sharply after the announcement.
• Officials in New Delhi warned the tariffs could complicate upcoming trade talks scheduled for December 10–11.

Why It Matters

• India is the world’s largest rice exporter, with a 28% global market share.
• The tariff threat highlights growing US-India trade friction, especially over agriculture and energy.
• The move could reshape India’s export strategy, pushing it to diversify markets beyond the US.