India-US Ties: US President Donald Trump on Monday hinted that he may impose new tariffs on agricultural imports, particularly on Indian rice and Canadian fertilizers. This comes as trade discussions with New Delhi continue without significant progress.
Trump made the comments during a meeting at the White House where he unveiled USD 12 billion in fresh support for American farmers.
The US President unveiled a multi-billion-dollar farm relief package while sharpening his criticism of agricultural imports from India and other Asian suppliers, telling a White House roundtable that tariffs would be used aggressively to protect American producers.
Trump’s Tariff Threat To India
Trump stated that he would “take care” of the alleged dumping of Indian rice into the US. Farmers have pointed to falling rice prices, claiming imports from countries like India, Vietnam, and Thailand 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.”
Why Did Trump Flag Indian Rice Imports In US?
According to IANS, opening the session with farmers, lawmakers, and top cabinet officials, Trump on Monday said the administration would direct “$12 billion in economic assistance to American farmers”, funded by tariff revenues the US is collecting from trading partners. “We’re really taking in trillions of dollars, if you think about it,” he said, adding that countries “took advantage of us like nobody’s ever seen.”
India surfaced prominently as an example during a lengthy discussion on rice imports, which one Louisiana producer described as devastating for southern growers.
Meryl Kennedy, CEO of Kennedy Rice Mill, told the President that the US market was being hit by “countries… dumping rice into this country today,” adding: “The tariffs are working, but we need to double down.” She listed “India, Thailand, [and] China into Puerto Rico” as major sources of subsidised imports and said the trend was undermining domestic producers. “We’ve never seen imports this great,” she noted, pointing to a WTO case against India and urging tougher restrictions.
Trump pressed for specifics. “Why is India not allowed to do that? They have to pay tariffs,” he said, directing Treasury Secretary Scott Bessent to review potential actions. When told that Indian firms owned “the two largest brands” in the US retail rice market, Trump responded: “All right, and we’ll take care of it. That’s great. It’s so easy… Tariffs, again, solves the problem in two minutes.”
ANI reported that Trump also suggested possible tariff measures on fertiliser coming from Canada to encourage local production.
US Tariffs On India
Earlier this year, Trump imposed 50 per cent tariffs on Indian goods, citing trade barriers and energy purchases. Meanwhile, a US delegation is expected to visit India this week for further talks, although no major breakthrough is anticipated.
Bureau Report
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