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regular-article-logo Tuesday, 09 December 2025

Donald Trump warns India against ‘dumping’ rice in US, says tariffs will ‘solve the problem’

The US President 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

Our Web Desk, PTI Published 09.12.25, 09:41 AM
Donald Trump

President Donald Trump speaks during a roundtable on farm subsidies in the Cabinet Room of the White House, Monday, Dec. 8, 2025, in Washington. AP/PTI

US President Donald Trump has criticised India for "dumping" rice into the American market, asserting that he will "take care" of the issue and emphasising that tariffs can easily resolve the "problem".

Trump made the remarks during a roundtable at the White House on Monday with representatives from the farming and agriculture sector, alongside senior cabinet members, including Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins. At the event, he also announced USD 12 billion in federal support for farmers.

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During the discussion, Meryl Kennedy, who runs Kennedy Rice Mill in Louisiana, told the President that rice growers in the southern United States are "really struggling" because other countries are "dumping" rice into the US market.

When Trump asked which countries were responsible, Kennedy 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." She noted that although the issue predates the Trump administration, “But unfortunately, we're seeing it in a much bigger way now.”

Kennedy added that the administration’s tariffs were helping but said, “but we need to double down,” prompting Trump to respond, "You want more, I understand".

Trump then turned to Bessent, asking, “India, tell me about India. Why is India allowed to do that? They have to pay tariffs. Do they have an exemption on rice?” Bessent replied, "No sir, we're still working on their trade deal."

Reiterating his stance, Trump said, "But they shouldn’t be dumping. I mean, I heard that. I heard that from others. They can’t do that." Kennedy informed him that there was a World Trade Organisation case against India.

Trump instructed Kennedy to list the countries accused of dumping and asked Bessent to note them down. “India. Who else?” he said. Kennedy responded: "India, Thailand, China into Puerto Rico, not into the continental US, but into Puerto Rico. Those are the main culprits," adding that American farmers are capable of feeding domestic and global markets but "we need fair trade, not free trade".

Trump assured the group that the matter would be “so easy to settle”. He said, "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," insisting that the issue could be resolved within “one day”.

US lower courts have previously ruled that Trump’s use of emergency powers to impose tariffs worldwide is unlawful, and the case is now headed to the Supreme Court.

"It's so unfair. They go out of business. They put everyone out of business," Trump said, arguing that earlier administrations failed to act against overseas manufacturing that led to the decline of the American automobile and chip industries. “It's the same thing with rice. It'll be good, will get it solved very quickly. We just need the countries. Just give us the names of the countries. Tariffs, again. It solves the problem in two minutes," he added.

Kennedy later pointed out that foreign players have "bought" some of the largest retail rice brands and therefore have an incentive to subsidise their products. When Trump asked, "Who did that?" she replied, "Indians".

"We'll take care of it. It’s so easy," Trump said.

India, the world’s largest rice producer at 150 million tonnes, accounts for 28 per cent of global output and remains the top exporter with a 30.3 per cent share in global rice shipments for 2024–2025, according to the Indian Rice Exporters Federation (IREF).

Data from the India Brand Equity Foundation (IBEF) shows that India exported around 2.34 lakh tonnes of rice to the US in FY 2024 — less than 5 per cent of its total basmati exports of 52.4 lakh tonnes — with West Asia continuing to be the largest market.

Among India’s rice varieties, ‘Sona Masoori’ is particularly sought after in markets such as the US and Australia.

Trump has also imposed a 50 per cent tariff on India — the highest globally — including a 25 per cent levy on Delhi’s purchases of Russian oil.

Indian Rice Exporters Federation National President Prem Garg had earlier described the 25 per cent reciprocal tariff as a temporary “hurdle” but maintained that India still holds a pricing edge over Vietnam and Pakistan.

“This tariff is a temporary hurdle, not a long-term roadblock. With strategic planning, diversification, and flexibility, Indian rice exporters can protect and even expand their presence in the US market," Garg had said.

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