New Delhi/Chandigarh, Dec 9: Donald Trump on Monday warned that India “should not be dumping rice” into the American market, signalling he is prepared to impose additional tariffs after US farmers complained of cheap imports hurting domestic producers.
During a roundtable at the White House with agriculture representatives and senior officials, the president announced USD 12 billion in federal aid for farmers. Seated beside him, Louisiana agribusiness owner Meryl Kennedy told him that producers in the southern states were “really struggling” as rice shipments from abroad continued to undercut US-grown varieties.
When asked which nations were involved, Kennedy replied, “India and Thailand; even China into Puerto Rico. We haven’t shipped rice into Puerto Rico in years.” She added the trend had expanded recently: “We’re seeing it in a much bigger way now.”
Trump, turning to Treasury Secretary Scott Bessent, asked, “Why is India allowed to do that? They have to pay tariffs. Do they have an exemption on rice?”
Bessent responded: “No sir, we’re still working on their trade deal.”
Trump then said, “They shouldn’t be dumping. They can’t do that.” He instructed his team to list the countries flagged by farmers and added, “It’s solved so quickly with tariffs… your problem is solved in one day.”
Kennedy noted that a World Trade Organization case against India is already underway and argued: “American farmers can feed not just the US but nations around the world. We need fair trade, not free trade.”
Trump insisted tariffs would settle the matter swiftly once a pending Supreme Court case determines the scope of his emergency tariff powers. “It’s so unfair. They put everyone out of business,” he said, comparing the situation to past losses in the US automobile and chip sectors.
India is the world’s largest rice producer and top global exporter, shipping about 2.34 lakh tonnes to the US in 2024—less than 5% of its basmati exports—according to the India Brand Equity Foundation. Despite facing a 50% US tariff, including 25% linked to Russian oil purchases, Indian exporters maintain competitiveness, Prem Garg had said earlier, calling the tariff a “temporary hurdle.”
