In a latest pushback against India, United States President Donald Trump has warned that he is ready to consider rice export tariffs on agricultural exports, including Indian rice.
Trump's pushback was a direct response to farmers in the US drafting complaints about cheap foreign goods undercutting local producers.
Speaking at the White House roundtable meeting, where he announced a $12 billion bailout package for American farmers, Trump said his administration will look into the aspect of India dumping cheap rice into the American market.
Trump, in a back-and-forth conversation with US Treasury Secretary Scott Bessant, implied that India 'cannot do that', suggesting that tariffs could soon follow.
"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 Bessant.
#WATCH | US President Donald Trump asks the United States Secretary of the Treasury, Scott Bessent, "Why is India allowed to do that ("dumping rice into the US")? They have to pay tariffs. Do they have an exemption on rice?"
December 8, 2025
United States Secretary of the Treasury, Scott Bessent… pic.twitter.com/75tKFYt37G"No, sir. We're still working on their trade deal," Bessant replied.
"They should not be dumping (rice)...They cannot do that," Trump retorted.
This comes as US farmers compel Trump into taking a hard stance against subsidised rice imports, which have locally made produce unattractive, from a pricing point of view.
A potential tariff on rice exports could spell significant trouble for Indian rice exporters such as KRBL and LT Foods.
Reaching a consensus with US, therefore, could be critical for India, which remains one of the few countries still yet to sign a trade deal agreement with the Trump administration.
A senior delegation from the US Trade Representative's office led by Deputy USTR Rick Switzer, is set to resume talks with India this week, with a meeting scheduled on Dec. 10 and Dec. 11, as both sides look to push for the elusive Bilateral Trade Agreement.
A potential trade deal with the US could go a long way in lifting the cautious sentiment in the Indian market.
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