Washington: US President Donald Trump has signaled the possibility of new trade actions against India, accusing New Delhi of pushing low-priced rice into American markets and worsening the financial strain on domestic growers. His remarks came during a roundtable discussion at the White House with farmers, industry representatives, and senior cabinet officials.
During the meeting—also attended by Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins—Trump unveiled a USD 12-billion support package intended to cushion US farmers from rising competition and market volatility.
One of the participants, Meryl Kennedy of Louisiana-based Kennedy Rice Mill, told the President that producers in the southern states have been grappling with a surge of inexpensive rice imports. According to her, India and Thailand have become dominant suppliers, while China has increasingly targeted Puerto Rico, a market that once relied heavily on US rice.
Kennedy noted that the trend long predates the current administration but has intensified recently. She urged the government to strengthen existing tariffs, telling Trump that the measures imposed so far have helped but require further tightening.
Trump pressed his officials for clarity on India’s trade status, questioning why such shipments were continuing. Bessent responded that trade negotiations with India were ongoing and that no special exemption currently applied to rice imports.
Calling the situation “unfair” to American producers, Trump suggested that tariffs could quickly curb what he described as “dumping.” He asked Kennedy to list the countries allegedly responsible and directed Bessent to take note. “Tariffs fix this instantly,” the President insisted, adding that the administration’s ability to act swiftly depends on an upcoming Supreme Court ruling concerning his use of emergency powers for imposing duties.
Lower courts have previously ruled against Trump’s broad application of emergency authority in trade matters, making the Supreme Court’s verdict pivotal for the administration’s tariff strategy.
The President compared the situation in the rice sector to earlier losses in the US automobile and semiconductor industries, which he blamed on past administrations’ reluctance to restrict imports.
Kennedy also pointed to foreign control of major retail rice brands, claiming that such ownership gives overseas producers room to subsidise prices. When she identified Indian companies as key players, Trump reiterated that his administration would intervene decisively.
India remains the world’s largest rice producer, accounting for about 150 million tonnes annually—roughly 28 percent of global output—and continues to dominate international exports. Data from the Indian Rice Exporters Federation shows India held more than 30 percent of global rice export share in 2024–25.
Despite this, shipments to the US remain a small fraction of India’s total exports. According to the India Brand Equity Foundation, the US imported around 2.34 lakh tonnes of Indian rice in the 2024 fiscal year, with West Asian markets continuing to be India’s primary buyers.
Certain varieties, particularly Sona Masoori, have found strong demand in the US and Australia due to consumer preferences in those regions.
The US has already levied steep tariffs on Indian goods, including a 50 percent duty—its highest globally—alongside a 25 percent surcharge linked to India’s purchases of Russian oil. India responded with its own 25 percent tariff, which industry leaders have described as challenging but manageable.
Indian Rice Exporters Federation President Prem Garg said earlier this year that Indian exporters still maintain a competitive edge. He described the tariff barrier as temporary and emphasised that strategic planning would help safeguard India’s presence in the US market.
