Archive · 11 Dec 2025
US Tariff Threat on Indian Rice
The US is thinking about putting more taxes on rice from India.
The US says India is selling rice too cheaply, which hurts American farmers.
But Indian rice sellers say this is not true and that the US market is not very big for them.
They also say that any new taxes will mostly affect American people, not their sales.
India sells rice to many other countries and is the biggest rice producer in the world.
The Indian rice sellers say their exports to the US are very small and new markets are growing.
They also say that the current taxes have not affected their sales so far.
US considers additional tariffs on Indian rice, currently at 50%.
Indian rice exporters say the US market is less than 3% of their total exports.
Indian exporters reject US allegations of dumping rice in the US market.
Any further tariff hike will primarily be borne by American consumers, according to Indian exporters.
India is the world's largest rice producer and exporter, with robust demand from various countries.
- Who
- US President Donald Trump, Indian Rice Exporter Federation, Ricevilla Group CEO Suraj Agarwal
- What
- Threat of additional tariffs on Indian rice by the US, rejection of dumping allegations by Indian exporters
- When
- Recent discussions in Washington, current tariff hikes over the last three months
- Where
- United States, India
- Why
- To protect US farmers and address alleged dumping, while Indian exporters argue the tariffs will not significantly impact their sector
US Government
Indian Rice Exporters
Dumping Allegations
US Government
US officials allege that India is dumping rice in the US market.
Indian Rice Exporters
Indian exporters reject the dumping allegations, stating they are completely wrong.
Impact of Tariffs
US Government
The US government believes tariffs will protect domestic farmers.
Indian Rice Exporters
Indian exporters argue that any additional tariffs will primarily be borne by American consumers and will have negligible demand impact.
- US Market Share
- Less than 3% of India's annual basmati rice exports
- Annual US Imports
- 2.7 lakh tonne of Indian rice
- Current Tariff on Indian Rice
- 50%
- India's Global Rice Export Share
- 40%
- New Markets for Indian Rice
- Gulf countries, African nations, Russia, Brazil, Thailand
- Impact of Tariffs on Demand
- No demand impact observed so far
- India's Rice Production Growth
- Expected 4-5% growth next year
Sources
Trump signals new tariffs on Indian rice amid stalled trade talks
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Why India is not ‘dumping’ rice in the US as Trump says
Trump warns of new US tariff on Indian rice, raising concerns over ongoing trade talks - Telegraph India
Why Indian Rice Exporters Aren’t Worried About Trump’s New Tariff Threat
"Pakistan Played Trump Right": Raghuram Rajan's Take On US Tariffs On India
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Daily Briefing | India-US trade talks today: can they seal the deal?
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India-US hold key talks over trade, investment, defence ties, TRUST initiative – details here
‘Best offer yet’: How India-US trade talks have moved
