Saturday, March 29, 2025
Trump Signals New Tariffs on India After Farmer Complaints
Summary:
US President Donald Trump has indicated that he may impose another round of tariffs on India, potentially doubling duties on imported rice. The move follows complaints from American farmers, who say cheap foreign rice is hurting domestic producers. Trump is also considering higher tariffs on fertilizer imports from Canada.
Updated: December 9, 2025 | 07:44 AM IST
US President Donald Trump has signaled that the United States could soon raise tariffs on rice imports from India, citing concerns raised by American farmers about low-priced foreign produce flooding the domestic market.
According to reports, the Trump administration is reviewing the volume of inexpensive foreign rice entering the US, particularly from India. In addition to rice, the president has also hinted at increasing tariffs on fertilizer imported from Canada, as part of a broader effort to protect American agricultural interests.
Bloomberg reported that US rice producers and millers have complained directly to President Trump, arguing that subsidized rice imports from overseas are undercutting domestic prices and harming local farmers. The pressure from the farming community has intensified calls for stricter trade measures.
While addressing the issue, Trump announced a $12 billion bailout package for American farmers. He said the government would closely examine how much cheap foreign rice is entering the US market. Farmers have urged the administration to take tough action, claiming that subsidies provided to foreign producers give them an unfair advantage over US-grown rice.
Trump echoed these concerns, alleging that some countries are engaging in unfair trade practices. He suggested that higher tariffs are necessary to counter what he described as “cheating” in global agricultural trade.
The president also indicated that tariffs on Canadian fertilizer could be raised soon. Merrill Kennedy, CEO of Kennedy Rice Mill in Louisiana, told Trump that a large portion of rice imported into the US comes from India, Thailand, and China. He argued that although tariffs already exist on these countries, duties on rice imports should be doubled to protect domestic producers.
Following these discussions, Trump directed Treasury Secretary Scott Bessent to prepare a list of countries exporting the largest quantities of rice to the United States, signaling that further trade action may be imminent.
Currently, the US has imposed a 50% tariff on certain Indian goods, and trade negotiations between India and the United States are set to resume this week. On December 10 and 11, a US delegation will meet Indian officials to try to move forward on a bilateral trade agreement.
India’s Commerce Secretary Rajesh Agrawal will serve as the chief negotiator for the Indian side during the talks. The outcome of these discussions could play a crucial role in determining whether additional tariffs on Indian rice are formally announced in the coming days.
