LT Foods Shares Tumble In Trade After Trump Tariff Threat — Details Inside
The massive drawdown in the LT Foods stock is a direct ramification of Trump's comments, as he hinted at potential tariffs against Indian rice exports.
Shares of LT Foods are under pressure on Tuesday's session, trading with cuts of almost 8%. This comes on the back of US President Donald Trump's recent comments, as he threatened India with potential tariffs on rice exports.
The stock is currently trading at Rs 362, which accounts for fall of more than 7.5% compared to Monday's closing price of Rs 393. On a year-to-date basis, the scrip has fallen 13%.
As mentioned earlier, the massive drawdown in the LT Foods stock is a direct ramification of Trump's comments, as he hinted at potential tariffs against Indian rice exports.
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.
"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.
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.
LT Foods, to that end, is a crucial piece of that supply chain, with 41% of the company's revenue originating in North America.
Through brands such as Royal and Golden Star, LT Foods is one of the top rice exporters in the United States.
A potential tariff, therefore, may have serious implications to the company's export business, especially considering the fact that North America accounts for 60% of LT Foods' export revenue, which in turn, is 70% of the company's overall business.
Another rice exporter, KRBL is also under pressure but not as much as LT Foods since only a small portion of the company's export business is geared towards the North America region.
