Trump Considers Fresh Tariffs on Indian Rice Amid US Farmers’ Dumping Allegations

Trump Considers Fresh Tariffs on Indian Rice Amid US Farmers’ Dumping Allegations

Despite the threat of new tariffs, both India and the US have been engaged in discussions regarding trade agreements.

RMN News Trade Desk
New Delhi | December 9, 2025

US President Donald Trump has signaled his administration is prepared to consider fresh tariffs on agricultural imports, including Indian rice, following strenuous complaints from US producers regarding cheap foreign goods undercutting the domestic market. The announcement was made during a White House roundtable held to unveil a $12 billion bailout package intended for American farmers.

During the meeting, farmers pressed the President to take a harder line on trade, arguing that subsidized rice imports are “battering US markets” and causing domestic prices to drop. Trump responded to their concerns by claiming the countries involved are “cheating” and suggested that tariffs would be forthcoming, vowing to “take care” of the matter quickly.

Meryl Kennedy, CEO of Louisiana-based Kennedy Rice Mill, specifically identified India, Thailand, and China as the “top culprits” of market dumping, noting that rice producers in the South are “really struggling”. Kennedy urged the administration to “double down” on tariffs, stating that current duties were working but more action was needed. The President subsequently asked Treasury Secretary Scott Bessent to formally record the countries cited by the farmers as sources of unfair competition.

While addressing the rice issue, President Trump also hinted at potential action against Canada, suggesting that “severe duties” could be imposed on Canadian fertilizer imports to boost US domestic production.

This consideration of new tariffs comes amid already strained economic ties between Washington and New Delhi. The US had previously imposed 50 percent tariffs on Indian goods in August, citing New Delhi’s trade barriers and its continued purchases of Russian oil.

Furthermore, President Trump had previously called on the European Union in September to impose 100 percent tariffs on China and India as a strategy to intensify economic pressure on Russian President Vladimir Putin and significantly reduce Russia’s oil revenues.

Despite the threat of new tariffs, both India and the US have been engaged in discussions regarding trade agreements. A senior US delegation from the Trade Representative’s office, led by Deputy USTR Rick Switzer, is scheduled to resume trade discussions with India on December 10 and 11. India’s chief negotiator, Commerce Secretary Rajesh Agarwal, remains “very optimistic” about concluding the first phase of the Bilateral Trade Agreement (BTA) before the end of the calendar year.