Washington, December 9: US President Donald Trump has signalled that his administration may impose new tariffs on agricultural imports from India, specifically targeting rice, even as he announced a USD 12 billion support package for American farmers at the White House.
Speaking at a farmer roundtable on Monday, Trump said that imports of rice from India and fertiliser from Canada were putting pressure on US producers, and warned that he was prepared to respond with additional duties.
They shouldn’t be dumping… You can’t do that,” Trump said, adding that his administration would “take care” of alleged dumping of Indian rice in the US market.
During the discussion, Trump questioned officials about India’s trade practices, specifically asking whether India had a tariff exemption on rice, and received a response from Treasury Secretary Scott Bessent.
American rice farmers have complained of falling prices and accuse exporters from India, Vietnam and Thailand of undercutting them with cheaper shipments.
$12 Billion Support Package for US Agriculture
The tariff warning came at the same event where Trump unveiled a USD 12 billion aid programme for US farmers facing losses from trade disputes and weak commodity prices.
According to the White House and the US Department of Agriculture, the package will be financed through the USDA’s Commodity Credit Corporation and is intended as a temporary liquidity “bridge” until markets stabilise.
Payments are expected to be released by February 28, 2026, not beginning disbursement shortly after December 2025 announcement. The announcement was made by President Trump and Agriculture Secretary Brooke Rollins was quoted, but there is no mention of Treasury Secretary Janet Yellen or Agriculture Secretary Tom Vilsack participating in the announcement; Vilsack is not the Agriculture Secretary under Trump.
Trump held the roundtable with farmers and lawmakers as the details of the program were presented, but Agriculture Secretary Tom Vilsack and Treasury Secretary Janet Yellen were not reported to have joined.
Fresh Strain on India–US Trade Track
Trump’s comments add a new point of friction in already difficult trade talks between Washington and New Delhi. Earlier this year, the US imposed 50% tariffs on Indian goods, citing trade barriers and disagreements over energy purchases, not primarily on Chinese goods.
Indian rice exports to the US consist largely of premium basmati shipments but specific export values and their share of India’s total rice exports in FY 2025 are not publicly confirmed.
Trade analysts say that while additional tariffs would raise prices for US consumers, the impact on India’s overall rice trade may be limited because the American market forms only a small share of its exports and faces some of the highest existing tariff levels in the world.
Political and Economic Calculus
Trump framed the proposed tariff action and the farm-aid package as part of a broader effort to “protect American farmers” from what he calls unfair foreign competition. The announcement comes ahead of key electoral contests in US farm states, where discontent over fluctuating prices and earlier trade wars especially with China has been rising.
For now, the administration has not published a formal tariff schedule for Indian rice or Canadian fertiliser. However, Trump’s remarks make clear that further trade measures remain on the table as Washington attempts to balance domestic political pressures with ongoing negotiations with major partners such as India and Canada.
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