In the recent developments regarding US tariffs, President Donald Trump is considering imposing new duties on agricultural imports, including Indian rice and Canadian fertilisers, to support US farmers after hearing their concerns about cheap foreign goods weakening domestic producers.
These remarks came during a White House meeting where he announced $12 billion in fresh support for US farmers. Trump asserted that rising imports were hurting local producers and reiterated his intent to address the issue. He stated that he would look into alleged dumping of Indian rice into the US market. Farmers across the US have reported falling rice prices, claiming that imports from India, Vietnam, and Thailand are undermining their crops.
Possible Tariffs on Canadian Fertiliser
In addition to rice, Trump also hinted at possible tariff measures on fertiliser imported from Canada to promote local production. He noted, “A lot of it does come in from Canada and we’ll end up putting very severe tariffs on that, if we have to.” These statements come amid ongoing concerns about inflation, rising consumer prices and increasing input costs for farmers—one of Trump’s key voter bases.
Earlier this year, the US had already imposed punitive 50% tariffs on Indian goods, citing India’s purchase of Russian oil. A US delegation is expected to visit India this week to advance discussions, although a major breakthrough is unlikely.
New Trade Flashpoint Between India and the US
A new trade flashpoint appears to be developing after President Trump questioned why New Delhi is “allowed” to export large volumes of rice to the US without facing higher duties. The comment was again made during the White House meeting where he unveiled the $12-billion support package for American farmers, who have long been urging stronger protection from agricultural imports.
Dr. Prem Garg, NP of IREF Responds: ‘Comments Add Another Layer of Uncertainty’
Reacting to the statement, Dr. Prem Garg, National President of the Indian Rice Exporters Federation (IREF), said the remarks add another layer of uncertainty at a time when bilateral trade negotiations are already facing unusual delays. Garg emphasised that India’s rice exports to the US comply fully with World Trade Organization rules and established bilateral guidelines.
He clarified that India exports only Basmati rice and its varieties to the United States. He stated that even after the imposition of 50% tariffs, there has been no impact on India’s rice exports and no loss to Indian farmers, because these exports are limited to ethnic Basmati varieties. He added that India has also opened several new markets, which has further strengthened export stability.
Responding to President Trump’s remarks alleging that India is “dumping rice” into the US market, Dr. Garg firmly stated that there is no dumping at all. Indian rice exports to the US are entirely market-driven, based on genuine consumer demand, particularly among ethnic communities that prefer Basmati rice. Since Basmati has unique characteristics and cannot be replaced by local US varieties, the tariffs have not reduced India’s export volumes.
Dr. Garg emphasised that the new tariffs actually place a burden on US consumers, not on Indian farmers or exporters. Retail prices in the US rise due to the higher duties, while India’s export earnings remain stable. He reiterated that India’s Basmati rice exports stand at about 6 million tonnes, reflecting a strong and resilient export sector that continues to perform well despite tariff challenges.
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