India-US Tariff War / Trump said– American farmers are suffering losses due to India sending cheap rice– will impose extra tariffs

US President Donald Trump announced on Monday at the White House that his administration is considering imposing additional tariffs on rice imported from India and fertilizer from Canada, while speaking during an event to unveil new economic aid for farmers, Trump stated that cheap goods from other countries are harming American farmers, leading to a reduction in their income. This declaration comes amidst increasing pressure on Trump due to inflation and rising. Prices within the United States, with farmers also grappling with escalating operational costs.

Protecting American Agriculture

President Trump explicitly articulated that safeguarding domestic industries and farmers is a top priority under his 'America First' policy. He specifically criticized countries like India, Vietnam, and Thailand for selling rice at very low prices in the US market, a practice he termed 'dumping. ' According to Trump, this dumping directly impacts the earnings of. American farmers, preventing them from receiving fair prices for their produce. He deemed this situation unacceptable and stated that it shouldn't be allowed to continue. Trump also questioned his Treasury Secretary about whether India receives any special exemptions regarding rice trade,. To which the Secretary responded that trade agreement discussions between the two nations are still ongoing. This exchange underscores the administration's serious consideration of the issue and its ongoing review of trade relations.

The Rice Dilemma

Should the Trump administration proceed with imposing additional tariffs on Indian rice, it would directly impact the price of rice exported from India to the United States. Such tariffs would make Indian rice Importantly more expensive in the American market, compelling US consumers to pay higher prices. Plus, Indian farmers and exporters who rely heavily on the US. Market for a substantial portion of their crop could face significant losses. The increased cost could lead to a decrease in demand for Indian rice in the US, potentially forcing Indian exporters to seek out new markets. However, media reports suggest that India doesn't export a large volume of rice to the US, implying that this decision might not severely affect the entire Indian rice industry, though those directly involved in US trade will undoubtedly face challenges.

Understanding 'Dumping'

In addition to rice, Trump also raised the possibility of imposing strict tariffs on fertilizer imported from Canada. He warned that if Canadian fertilizer becomes too cheap, the US would implement stringent tariffs. Canada is the largest supplier of potash fertilizer to the United. States, and until now, it has enjoyed protection under existing trade agreements. Trump's statement could escalate trade tensions with Canada. Fertilizer represents a significant cost for American farmers, and new tariffs could further exacerbate their difficulties by increasing agricultural production expenses, while the US recently classified potash and phosphate as 'critical minerals' to ensure their supply, but farmers remain concerned about the implications of potential new tariffs.

'Dumping' is a trade practice where a country sells its goods in another country at exceptionally low prices. These prices are often so low that local companies and farmers in the importing country can't produce goods at a comparable cost, while this practice floods the local market with inexpensive foreign goods, causing substantial losses to domestic industries. Gradually, foreign companies or products can dominate the local market, negatively impacting domestic production and employment. Trump's accusation is that India and other nations are engaging in such 'dumping' practices with rice, thereby harming American rice farmers.

Broader Trade Context

This isn't the first instance where the Trump administration has discussed imposing tariffs on India. Trump has previously imposed a total of 50% tariffs on India, with 25% of that being an additional tariff imposed due to India's purchase of Russian oil, while under his 'America First' policy, Trump has historically levied tariffs on various foreign products with the aim of protecting American industries and workers. This latest move signals another potential escalation in global trade relations, particularly at a time when economies worldwide are facing numerous challenges. Trump's stance indicates his willingness to prioritize his country's economic. Interests, even if it leads to friction in international trade relationships.

#WATCH | US President Donald Trump asks the United States Secretary of the Treasury, Scott Bessent, "Why is India allowed to do that ("dumping rice into the US")? They have to pay tariffs. Do they have an exemption on rice?"

United States Secretary of the Treasury, Scott Bessent… pic.twitter.com/75tKFYt37G

— ANI (@ANI) December 8, 2025