Trump argued that low-priced imports from countries including India, Vietnam, and Thailand are undercutting domestic producers, causing significant losses to American farmers. He said, “Dumping must stop. Our farmers cannot compete with products sold at such artificially low prices.”
The US Treasury Secretary confirmed that discussions with India over rice trade are ongoing, and no final agreement has been reached. While India does not export large quantities of rice to the US, traders directly dealing with the American market could face disruptions.
In addition, Trump warned that steep tariffs may be applied to fertilizers imported from Canada if prices fall too low. The US relies heavily on Canadian potash, and any new duties could increase costs for farmers already struggling with inflation and high input expenses.
Dumping refers to the practice of selling products in a foreign market at prices so low that local producers cannot compete, potentially displacing domestic businesses and flooding the market with cheap imports.
Under Trump’s “America First” approach, the total tariff on India has now risen to 50%, including a 25% duty specifically linked to India’s ongoing purchases of Russian oil. Analysts say while the impact on the broader US rice market may be limited, exporters and farmers in India who target the American market could face lower demand and potential financial losses.
The move underscores the increasing trade tensions between Washington and New Delhi, and may prompt Indian exporters to seek alternative markets to mitigate potential losses. The exact timeline and structure of the proposed tariff are expected to be announced in the coming weeks.
