Trump signals fresh tariffs on Indian rice, alleges dumping in US

US President Donald Trump is considering imposing additional tariffs on Indian rice, accusing New Delhi of dumping the commodity in the US. During a meeting at the White House on Monday (December 8), Trump unveiled $12 billion in new support for American farmers and said that “they (India) shouldn’t be dumping” their rice into the US.

What Kennedy told Trump

Trump further stated that such imports were having an adverse impact on domestic producers, adding that rice baron Meryl Kennedy, the founder and CEO of Kennedy Rice Mills and 4 Sisters Rice, had informed him about the falling price of rice.

Trump made the remarks after being given a list of countries, including India, Thailand and even China, which were dumping rice into the US.

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Trump held a roundtable in the White House on Monday with representatives of the farming and agriculture sector as well as key members of his cabinet, including Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins.

Meryl Kennedy, who runs her family's agribusiness Kennedy Rice Mill in Louisiana, told Trump that rice producers in the southern part of the country are "really struggling' and that other nations are "dumping" rice into the US.

Seeks higher tariffs on rice

When asked by Trump which countries are dumping rice into America, Kennedy, sitting next to the President, replied, "India, and Thailand; even China into Puerto Rico. Puerto Rico used to be one of the largest markets for US rice. We haven't shipped rice into Puerto Rico in years."

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Kennedy said that this has been happening for years and did not start during the Trump administration. "But unfortunately, we're seeing it in a much bigger way now," she said.

She said that tariffs imposed by the Trump administration are working, “but we need to double down”, to which Trump said, "You want more, I understand".

‘Easy to settle with tariffs’

Trump asked Kennedy to give him the names of the countries dumping rice into the US and instructed Bessent to note down the names. "India. Who else?" Trump said.

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"India, Thailand, China into Puerto Rico, not into the continental US, but into Puerto Rico. Those are the main culprits," Kennedy said, adding that American farmers can feed the US as well as nations around the world, but "we need fair trade, not free trade".

"It's solved so quickly with tariffs to these countries that are illegally shipping. It's solved. Your problem is solved in one day. That's why we have to win the Supreme Court case," he said, adding that this problem will be solved in “one day”.

‘Is Indian rice exempted from tariffs?’

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

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Bessent tried to respond, saying, “No, sir, we are still working on their trade deal so…,” but Trump cut him short, saying, “Yeah, but they shouldn't be dumping.” I mean I heard that from others, too. You can't do that.”

The US President said that he would "take care" of the alleged dumping of rice by India into the US.

Hints at tariffs on Canadian fertiliser

Trump also indicated that he may consider imposing tariffs on fertiliser imported from Canada, saying such measures could help boost domestic production.

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“A lot of it does come in from Canada, and so we'll end up putting very severe tariffs on that, if we have to, because that's the way you want to bolster here,” he said, adding, “And we can do it here. We can all do that here.”

His comments come at a time of continued economic strain, with inflation and elevated consumer prices remaining key concerns. Farmers, who form an important part of Trump’s political base, have been dealing with higher input costs and shifting markets influenced by earlier tariff decisions.

The backdrop

Trade discussions with both Canada and India have faced hurdles, complicating efforts to restore stable commercial relations. Trump has already imposed 50 per cent tariffs on Indian goods this year, citing what he described as restrictive trade practices and India’s energy purchases from Russia. A US delegation is scheduled to travel to India this week for additional talks.

Trump has also previously raised objections regarding Canadian trade, including threats to raise duties on items outside the scope of the North American Free Trade Agreement, alongside suggestions of revisiting the pact itself.

(With agency inputs)