Trump Focuses on Our Rice Issue

US President Donald Trump has recently warned of imposing higher tariffs on rice imports from India. Currently, a 50% tariff is already in place on Indian goods entering the US. Trump stated that since a large quantity of Indian rice is reaching the US, higher tariffs are necessary.

However, Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), clarified that Trump’s threats have no real trade rationale and are merely political statements aimed at appealing to local farmers during election season. In 2024-25, India exported only $392 million (approx. ₹3,500 crore) worth of rice to the US, which is just 3% of India’s total international rice exports. Already, Indian rice in the US faces a 53% tariff, and 86% of exports are premium Basmati varieties.

Prem Garg, President of the Indian Rice Exporters Federation (IREF), also stated that the new tariffs will not discourage Indian exporters. He emphasized that the US market is not a major destination for Indian rice. Currently, India ships only 270,000 tonnes annually to the US, which is a very small portion of the country’s overall rice exports.