Trump Threatens Rice Tariffs on India in Discussion With Louisiana Mill Owner
New Delhi: Unveiling a US $ 12-billion farm aid package at the White House a day ago on December 8, US president Donald Trump further raised the tariff heat on India on the topic of rice exports.
Trump's aid package is aimed at helping farmers who are impacted by low crop prices.
In the course of the announcement, Trump said that the package will be funded by the tariff revenue that the US is collecting since his administration announced "reciprocal" tariffs on imports from various countries. India is on the receiving end of 50% tariffs on imports.
"We're really taking in trillions of dollars, if you think about it," Trump said. He said that countries "took advantage of us [the US] like nobody's ever seen."
Meryl Kennedy of the Kennedy Rice Mills in Mer Rouge, Louisiana, said that the tariffs are working "but we need to double down."
"You want more?" Trump asked.
"They are cheating, right?" said Kennedy.
Trump then asked to be told about India.
"Do they have an exemption on rice?" Trump asked.
"No sir, we are still working on their trade deal," Scott Bessent, United States Secretary of the Treasury, said.
"Yeah but they should be...I heard from someone..." Trump said.
“Give me the countries if you could? Go ahead. India, who else? Mark it down, Scott,” the president said.
Kennedy, at this juncture, said, "There is a WTO case against India right now" and then went on to list countries like India, China, Thailand and China – mentioning that it imported to Puerto Rico, highlighting that these are "the main culprits."
"Puerto Rico used to be one of the largest markets for rice, we haven’t shipped rice into Puerto Rico for years,” she added.
A few minutes later, Trump again asked Kennedy to "give us the names of the countries" and said tariffs "solves the problem in two minutes."
"They have got the largest brands and retail too, right? So they have an incentive to subsidise their products..." Kennedy said.
"Yeah, who did that?" Trump asked.
"The Indians own the two largest brands," Kennedy said.
"We'll take care of it. It's so easy," said Trump.
India is the world's largest rice producer and the top rice exporter.
A report has, meanwhile, noted that the US is the fourth largest market for India's basmati rice and experts do not see this diminishing. During the fiscal 2024-25, India exported 2,74,213 metric tons of basmati rice valued at $337 million to the United States, the Deccan Herald report says.
The shares of rice exporters dropped in trade on December 9 after this exchange.
This article went live on December ninth, two thousand twenty five, at twenty minutes past one in the afternoon.The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
