Trump Threatens Tariffs on Indian Rice Exports Amid Ongoing India–US Trade Deal Negotiations

US President Donald Trump on Monday signalled the possibility of imposing additional duties on Indian rice exports to the United States. Speaking at the White House, Trump said he may introduce new tariffs on agricultural imports, particularly targeting Indian rice and fertiliser from Canada.

“Why is India allowed to do that—dumping rice into the US? They have to pay tariffs. Do they have an exemption on rice?” Trump asked Treasury Secretary Scott Bessent during the interaction. “They shouldn’t be dumping. I mean, I heard that from others. You can’t do that,” he added.

India exported about 2.34 lakh tonnes of rice to the US in FY24, which represents less than 5% of its total global basmati rice exports of 52.4 lakh tonnes. Trump also unveiled a $12 billion aid package for American farmers, some of whom have raised concerns that cheaper imports are making it harder for domestic products to compete in their own markets.

What Does It Mean for India?

India is among the countries facing some of the highest reciprocal tariff rates from the US, including the punitive 25% duty imposed in August following New Delhi’s purchase of oil from Moscow. Indian diplomats are currently seeking to reduce tariff levels from 50% to 15–16%, alongside a rollback of punitive import duties.

An additional tariff on rice exports may further complicate negotiations and increase pressure on India’s trade position. Agriculture remains a major point of contention in India–US trade talks, and the lack of consensus has been one of the main obstacles delaying the final bilateral pact. Reports say Washington is pushing India to open its agricultural market for US products—an offer India has resisted.

India–US Trade Deal

Trump’s statements come amid US Under Secretary of State for Political Affairs Allison Hooker’s visit to New Delhi and Bengaluru from December 7–11. The visit is expected to strengthen the strategic and economic focus of the bilateral relationship. According to media reports citing the US Embassy, discussions will prioritise advancing the strategic partnership, deepening commercial ties, expanding US exports, and enhancing collaboration in emerging technologies—including AI and space exploration.

The two nations will also hold three days of talks from December 10–12, aimed at finalising the opening tranche of the trade pact. The US delegation will be led by Deputy US Trade Representative Rick Switzer, according to PTI.