US President Donald Trump signals action on Indian rice 'dumping'

US President Donald Trump hinted at fresh tariffs on Indian rice as a Deputy USTR-led delegation arrived in New Delhi to assess the proposed trade deal between the two countries

US President Donald Trump on Tuesday (India time) hinted at fresh tariffs on Indian rice, as a delegation led by Deputy US Trade Representative (USTR) Rick Switzer arrived in New Delhi to assess the proposed trade deal between the two countries. “They shouldn’t be dumping. I mean, I heard that from others. You can’t do that,” Trump said, adding that he would ‘take care’ of the alleged dumping of the commodity in the American market. 

Trump was speaking at a White House event unveiling $12 billion in fresh support for American farmers. Meryl Kennedy, who runs her family’s agribusiness, Kennedy Rice Mill in Louisiana, told Trump that rice producers in the southern part of the country are ‘really struggling’ and that countries, including India, are ‘dumping’ rice into the US. 

 

He further said that America lost half of its car and chip industries because these products were being manufactured in other countries, and previous administrations did not impose tariffs on these imports. “It’s the same thing with rice. It’ll be good and will get solved very quickly. We just need the countries. Just give us the names of the countries. Tariffs, again. It solves the problem in two minutes.” 

India is the world’s largest exporter of rice. During 2024–25, India exported $392 million worth of rice to the US, compared to its global rice exports of $12.95 billion, according to government data. Currently, India faces a 50 per cent tariff on rice imports in the US. Of India’s $392 million in rice exports, basmati rice worth $337.1 million was shipped to the US in the previous financial year, making it the fourth-largest market for Indian basmati rice. 

The Indian Rice Exporters Federation (IREF) said that exports to the US remain strictly demand-driven, with most shipments executed against advance purchase orders from US-based importers. Indian rice in the US is predominantly consumed by communities of Gulf and South Asian origin, and demand continues to expand steadily. Importantly, rice grown in the US is not a like-for-like substitute for Indian rice. Indian basmati has a distinct aroma, elongation, texture, and flavour profile, and US-grown varieties generally do not meet the requirements of traditional dishes from the Gulf and South Asian regions, according to IREF. 

“Evidence from retail markets indicates that most of the tariff burden has been passed on to US consumers, as reflected in higher retail pack prices, while export realisations for Indian farmers and exporters have remained broadly stable. The Indian rice export industry is resilient and globally competitive,” said Dev Garg, vice-president of IREF. 

Ajay Srivastava, former trade ministry official and founder of think tank Global Trade Research Initiative, said that Trump’s threat appears driven more by domestic policies than by trade logic. New duties would scarcely dent Indian exporters, who have strong markets elsewhere, but would make rice costlier for American households, according to Srivastava. 

Meanwhile, a delegation led by Switzer is visiting India from December 9-11, as India aims to conclude the first tranche of the trade deal before the end of the calendar year. Talks with senior commerce department officials will be held on Wednesday and Thursday on all trade-related issues. Assistant USTR for South and Central Asia and chief negotiator of the proposed India-US Bilateral Trade Agreement negotiations, Brendan Lynch, along with other senior officials from USTR, are part of the delegation travelling to New Delhi to take stock of the deal. 

 

 

With inputs from agencies