Trump’s Rice Tariffs Threat Unlikely To Hurt The Indian Exports
In the series of recent developments regarding Tariffs, US President Trump’s latest threat to impose new tariffs on rice is unlikely to hurt the Indian exports. A trade research body, GTRI, stated that India exported $392 million worth of rice to the US in FY2025, just 3% of its global rice exports, and already combats tariffs of about 53% in the US market; 86% of these shipments are premium basmati. New duties would scarcely dent Indian exporters, who have strong markets elsewhere, but would make rice costlier for American households.
Trump’s tariffs came amid US team visiting India
Trump’s new tariffs come in the backdrop when a team from the US is visiting India with talks on the delayed trade deal that was scheduled for Wednesday and Thursday. However, the motive of the latest discussions was not known, but the visit was an unexpected one since govt. officials had earlier said most issues had been sorted out and last-mile talks were expected. Interestingly, the news about the US delegation’s trip came before Russian President Putin visited India.
A Pressure tactic in the midst of bilateral trade talks
Indian rice exports are not seen as dumping, as alleged by Trump, who is not seen as someone who always sticks to facts.With rice exports neither affecting the domestic market nor being subsidised, the threat is viewed as a negotiating tactic in bilateral trade talks. Notably, India and the US had rolled out negotiations for a trade deal in February. Not only this, but both nations hoped to close talks by September-October. However, with govt refusing to agree to Trump’s demand for decreasing duties on food and Genetically Modified crops, the US hit back with 25% reciprocal tariffs and another 25% secondary tariffs, stating the reason of India's purchase of Russian crude oil.
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