US Farmers Gain $12B Support as Trump Warns Indian Rice Imports Could Face Steep Tariffs Soon

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US President Donald Trump raised the chance of new Indian rice tariffs during a meeting at the White House on December 8. He said Indian rice enters the US market at cheap rates and hurts American farmers. His comments added fresh pressure on ongoing trade talks with India, which show little progress.

Growing Tensions in Trade Talks


Trump asked why India “dumped rice” into the US market. Treasury Secretary Scott Bessent said both nations are still working on a new deal. Trump promised action and said the situation needs quick attention. The statement came on a day when Trump announced a $12 billion support plan for US farmers who struggle with rising costs and tough competition.

Farm groups in the US blame falling rice prices on cheap imports from India, Vietnam, and Thailand. They say these imports make their crops less attractive in local markets. This helps Trump build a strong message for farm states that expect protection from new Trump tariffs.

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Impact on Indian Exporters and Markets


Indian exporters felt the impact within hours. Shares of companies such as LT Foods, KRBL, and others dropped. Investors fear higher duties will make shipments costly. India sends around 234,000 tonnes of rice to the US in a year. This looks small compared to global exports, but the US market offers high margins for basmati and special varieties. Any tariff hurts profits.

Trump did not mention tariff rates or timelines. India already pays high duties on many exports under earlier trade actions linked to the Russia–Ukraine war. If fresh dumping claims lead to stronger measures, Indian rice may lose its price edge in the US.

Indian officials say rice exports follow demand and do not break rules. They argue that Indian rice sells strongly worldwide because of quality, not unfair pricing. Talks between India and the US continue, but agriculture remains a major point of disagreement. A US team plans to visit India this week to restart discussions.

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Higher Indian rice tariffs may push exporters to shift stock toward Europe, the Middle East, and Africa. These regions show strong demand for basmati. Domestic prices in India may also fall if stocks remain unsold.

Consumers in the US may face higher rice prices. Imported basmati and premium grains already cost more than regular rice. New duties will raise shelf prices even further.

This moment reflects a mix of farm politics, global trade pressure, and rising inflation in the US. Trump aims to show strong support for American farmers. India aims to protect its exporters and trade rights. The next round of talks will decide if the tariff threat turns into action.

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