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Trump Hints at Fresh Tariffs Targeting India

(MENAFN) US President Donald Trump has raised the prospect of additional punitive tariffs on India, accusing New Delhi of “dumping” rice into the American market even as the two nations continue negotiating a broader trade agreement.

The warning surfaced during a Monday meeting at the White House with US farmers, who alleged that India and Canada were undercutting domestic producers by dumping rice and fertilizers in the United States.

“Why is India allowed to do that?” Trump asked Treasury Secretary Scott Bessent. “They have to pay tariffs. Do they have an exemption on rice?”

Officials at the meeting informed Trump that the two largest brands sold in the US retail rice market were Indian.

“All right, and we’ll take care of it,” Trump responded. “That’s great. It’s so easy… Tariffs, again, solves the problem in two minutes.”

“They shouldn’t be dumping... I mean, I heard that, I heard that from others. You can’t do that,” he added.

India remains the world’s biggest rice producer and top exporter, holding a 30.3% share of global shipments for 2024–2025, according to data from the Indian Rice Exporters Federation (IREF). Indian rice exports to the United States reached 234,000 tons in the 2024 financial year.

Despite producing less than 2% of global rice, the US is a significant exporter itself, supplying nearly 5% of world trade while importing roughly 1.3 million tons annually.

Washington currently imposes a 50% tariff rate on Indian goods, a combination of 25% reciprocal duties and an additional penalty tied to New Delhi’s continued purchases of Russian oil.

Trump’s newest tariff threat coincides with a visit to India by Allison Hooker, the US under secretary of state for political affairs, who is working to steady bilateral relations after months of trade tensions.

India is hopeful that a trade pact with Washington can be finalized by year’s end, Rajesh Agarwal, the nation’s commerce secretary and lead trade negotiator, said in November.

The United States remains India’s biggest export destination, accounting for $52 billion in shipments during the first seven months of the current fiscal year, according to reports.

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