Washington, Dec. 09, 2025

US President Donald Trump said on Monday that he is considering new tariffs on rice imported from India, after being told that foreign rice shipments were putting pressure on American farmers. The comments came during a meeting at the White House, where the president announced a fresh $12 billion support package aimed at helping farmers dealing with rising costs and unstable market conditions.

During the meeting, Trump was informed by Meryl Kennedy — founder and CEO of Kennedy Rice Mills and 4 Sisters Rice — that the price of rice in the US had been falling because of an increase in cheaper imports. She, along with others present, pointed out that several countries were shipping large quantities of rice into the American market. According to the list shared with Trump, India, Thailand, and even China were among the main countries accused of “dumping” rice, a term used when products are sold abroad at prices lower than their market value.

Trump, reacting to the information, asked his treasury secretary, Scott Bessent, why these imports were allowed without stronger tariffs. “Tell me about India. Why is India allowed to do that?” he asked. He then questioned whether India had any tariff exemptions for rice, making it clear he believed the current situation was unfair to American growers.

Bessent attempted to explain that work was still underway on a broader trade deal with India, but the president cut in, insisting that the practice had to stop. “They shouldn’t be dumping. I heard that from others too. You can’t do that,” Trump said. He assured those present that he would “take care of it,” signalling a possible tariff hike soon.

The discussion did not stop with rice. Trump also turned his attention to fertiliser imports, especially those coming from Canada. He said that large volumes of fertiliser entering the US from Canada were hurting local production. He added that he was ready to impose strong tariffs on these imports if needed, saying that such steps were important for protecting industries within the country. “We can do it here,” he said, arguing that domestic producers should not be pushed aside by cheaper foreign products.

These remarks come at a time when the US economy is under pressure. Rising inflation, high consumer prices, and persistent supply chain challenges have created concerns among both buyers and producers. Farmers, who form a significant part of Trump’s voter base, have faced additional struggles due to fluctuating input prices and global market uncertainties linked to existing tariff measures.

Trade relations with India and Canada have been difficult in recent months. Earlier this year, the US imposed 50% tariffs on several Indian goods, accusing India of trade barriers and issues related to energy purchases. A US delegation is expected to visit India later this week for talks, but officials do not expect any major agreement to come out of the meeting.

On the Canadian side, Trump has previously warned of raising duties on products not included in the North American Free Trade Agreement. There have also been hints that the agreement itself could be reconsidered if the US continues facing disadvantages.

The possibility of new tariffs on Indian rice adds another layer to an already complicated trade environment. Farmers across the US will likely welcome additional protection, while importers and consumers may worry about further price increases. India, for its part, is expected to watch the developments closely, as any tariff decision could affect its large agricultural export market.

For now, Trump’s comments suggest that both countries may have to prepare for tougher negotiations ahead, as the US signals a stronger push to shield domestic producers from foreign 

Trump Weighs New Tariff on Indian Rice Imports After Claims of ‘Dumping’

US President Donald Trump has once again turned the spotlight on trade, this time pointing at India for what he calls “dumping” rice in the American market. During a meeting at the White House, where he also announced a $12 billion support package for US farmers, Trump said he was told that cheaper rice from India, Thailand, and even China was putting pressure on local growers.

Meryl Kennedy, CEO of Kennedy Rice Mills and 4 Sisters Rice, briefed him on how rising imports were pushing down US rice prices. Hearing this, Trump questioned why India was allowed to send rice to the US without stronger tariffs. He even asked Treasury Secretary Scott Bessent whether India had any tariff exemption. When Bessent tried to explain that a trade deal with India was still being worked on, Trump cut in, saying, “They shouldn’t be dumping… you can’t do that,” and promised to “take care” of the issue soon.

Trump also hinted at tariff action against fertiliser imports from Canada, saying that cheap Canadian fertiliser was affecting local production. He said he was ready to impose heavy duties if needed, insisting that the US should support domestic industries first.

These remarks come at a time when farmers are already dealing with high costs, inflation, and market stress. Earlier this year, Trump imposed 50% tariffs on several Indian goods, and talks between both countries have not shown big progress. A US team is expected to visit India soon, but officials warn that a major breakthrough is unlikely.

With the possibility of new tariffs on rice and fertiliser, trade relations with both India and Canada could face more tension in the coming weeks.