 "Trump hints at additional tariffs on Indian rice as trade talks drag")
US President Donald Trump has indicated that he may impose new tariffs on agricultural imports, particularly Indian rice and Canadian fertilisers, as trade discussions with the two countries progress slowly.
Trump made these remarks at a White House meeting on Monday (local time) after he unveiled $12 billion support package for American farmers, adding that the imports were posing a challenge for domestic producers and reiterated his intent to address this issue.
The US President said he would "take care" of Indian rice being allegedly dumped into the US. He said that American farmers have flagged their concerns about the falling rice prices, claiming that the rice imports from countries like India, Thailand, and Vietnam are undercutting their crops.
"They shouldn't be dumping," Trump said. "I mean, I heard that, I heard that from others. You can't do that."
Efforts to steady trade relations with both Canada and India have proved difficult.
IREF reacts to Trump's statement
Reacting to Trump's statement, the Indian Rice Exporters Federation (IREF) said that prior to the latest tariff increase, Indian rice attracted a 10 per cent duty in the US market. With a 50 per cent tariff now in place, the duty has risen by 40 percentage points. Despite the steep hike, exports have continued, underscoring rice’s position as an essential item in the consumer basket.
“The Indian rice export industry is resilient and globally competitive,” said Dev Garg, vice-president, IREF. “While the US is an important destination, India’s rice exports are well-diversified across global markets. The Federation, in close coordination with the Government of India, continues to deepen existing trade partnerships and open new markets for Indian rice.”
ALSO READ | Trump calls tariffs 'faster, direct' way to safeguard US national security Tariffs on Canadian fertilisers
Trump has also hinted at imposing fresh tariffs on Canadian fertilisers to boost local production. "A lot of it does come in from Canada, and so we'll end up putting very severe tariffs on that, if we have to, because that's the way you want to bolster here," he said. "And we can do it here. We can all do that here."
Trump has repeatedly flagged tariff disputes with Canada, including threats to raise duties on items outside the North American trade pact. In recent comments, he has even hinted at reopening the agreement.
Earlier in October, Canadian Prime Minister Mark Carney met with Trump, making it his second visit to the White House after becoming the prime minister earlier this year. During the meeting, Trump said he believed the two sides could ultimately strike a trade agreement, though he did not provide details or a timeline on how it would be reached.
US economy struggles
Trump's remarks come at a time when the US economy remains strained. American farmers, who are one of Trump's core constituents, have also been struggling with higher input costs and tougher market conditions, pressures that have been linked to tariff measures. ALSO READ | I've ended 8 wars largely because of trade: Trump
India-US trade talks
Earlier this year, Trump imposed 50 per cent tariffs on Indian goods, citing trade barriers and India’s crude oil purchase from Russia, accusing New Delhi of funding Russian President Vladimir Putin's war in Ukraine. However, since then, the two sides have made efforts to negotiate trade talks to address the barriers.
A US delegation reached India on December 7 to hold another round of talks; however, officials do not expect a breakthrough. Allison Hooker, the US Under Secretary of State for Political Affairs, is on a five-day visit to boost bilateral strategic and economic ties.