US president Donald Trump indicated at a White House meeting that his administration may impose new tariffs on imported rice from India, sending the Indian stock markets into a tailspin. He cited concerns that subsidized foreign exports are “dumping” cheap rice into the US market and undercutting domestic producers, multiple media reports said.
The announcement came alongside a roughly US$12 billion aid package for American farmers, aimed at helping domestic agriculture cope with sustained global competition.
During the meeting, industry representatives — including Meryl Kennedy, CEO of 4 Sisters Rice — warned that rice imports from India, Thailand, and China were significantly driving down costs for US growers. Kennedy described these imports as “dumping,” a charge Trump echoed in remarks signaling that additional tariffs may follow.
“They shouldn’t be dumping,” Trump said.
The potential tariffs, if implemented, could add to an already steep tariff regime. In August 2025, the US raised duties on many Indian goods to 50% — a combination of a 25% “reciprocal” tariff and a 25% surcharge tied to India’s continued imports of Russian oil. Those duties already affect a wide range of Indian exports, including agricultural commodities.
Shares of leading Indian rice exporters KRBL and LT Foods fell sharply — around 7% — following the tariff warning, reflecting investor concerns over possible trade restrictions.
The tariff threat arrives amid ongoing U.S.–India trade negotiations, with a US delegation scheduled to visit New Delhi this week. Analysts warn that new duties could intensify strains between the two countries and risk destabilizing India’s agricultural export sector at a critical juncture.
Resilient industry
As far as rice exports are concerned, exporters say there is not much to worry about. India’s rice exports are spread out across the globe, and the US amounts to only a fraction of the total number.
“The Indian rice export industry is resilient and globally competitive,” Dev Garg, Vice President, Indian Rice Exporters Federation, has been quoted as saying. “While the US is an important market, India’s rice exports are well-diversified across global markets.”
During the financial year 2024-2025, India exported Basmati rice worth US$337.10 million, totaling 274,213.14 metric tons (MT). This places the US as the 4th largest market for Indian Basmati rice, according to Indian Rice Exporters Federation (IREF) data.
In the same period, India exported non-basmati rice valued at $54.64 million, amounting to 61,341.54 MT, making the US the 24th largest market for non-basmati rice.
The value of Indian rice exports to the US is around $390 million, which is approximately Rs 3,510 crore, multiple media reports said.
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Naresh Khanna – 10 February 2025
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