US President Donald Trump on Monday signalled that his administration was looking at new tariffs on Indian rice, accusing New Delhi of "dumping" the commodity in the American market. The remarks came during a meeting at the White House where Trump unveiled a $12 billion support package for American farmers facing cost pressures and market volatility.
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‘They shouldn’t be dumping’
Trump first received a briefing in the meeting from Meryl Kennedy, founder and CEO of Kennedy Rice Mills and 4 Sisters Rice, who spoke to him about falling rice prices amid rising competition from imported varieties. Trump said he had been told that among the countries “dumping rice” into the US were India, Thailand, and even China.
Looking over a list of such countries, Trump wanted to know: " Tell me about India. Why is India allowed to do that? They have to pay tariffs; do they have an exemption on rice? " he asked Secretary of the Treasury Scott Bessent.
When Bessent told the president that the administration was “still working on their trade deal,” Trump interrupted him, saying, “Yeah, but they shouldn't be dumping. I mean, I heard that from others, too. You can't do that." Then he said he would "take care" of the matter.
Tariff warning for Canadian fertiliser
Trump also threatened to do the same to Canada, proposing tariffs on imported fertiliser as an incentive to build plants in the US. He noted that a significant percentage of fertiliser in the US is from Canada and that “very severe tariffs” could be levied on it “if we have to,” claiming American manufacturers stood ready to replace all imports.
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Trade talks under continuing strain
As per a report by the Hindustan Times, the comments come at a time when farmers - one of Trump's key support groups - are struggling with rising input costs and broader economic pressures, including inflation. Trade negotiations with both India and Canada have been fraught, with little progress expected in forthcoming talks. Trump, earlier this year, slapped 50 per cent tariffs on various Indian goods, citing market barriers and also concerns over India’s energy purchases. Reportedly, a US delegation is visiting India this week, but officials do not expect a breakthrough in easing the ongoing trade frictions.
