Trump is weighing new tariffs on Indian rice following complaints from US farmers about alleged unfair dumping
The development follows calls from US farmers for stronger measures, saying subsidized rice imports are hurting their market and driving prices lower at home. Donald Trump promised to ‘deal with’ the matter and urged officials to pinpoint the countries allegedly undermining US markets.
Faced with complaints from farmers that American producers are being hurt by cheap foreign goods, US President Donald Trump has indicated that his administration is prepared to consider new tariffs on agricultural imports, including Canadian fertilizer and Indian rice, Bloomberg reported.
Speaking at a White House roundtable meeting to unveil a $12 billion bailout package for American farmers, Trump said the government would investigate claims that countries are dumping low-priced rice on the American market.
Farmers at the meeting pressed Trump to take a tougher stance, arguing that subsidized rice imports are hurting US markets and driving down domestic prices.
Trump responded by saying they were being deceptive and suggested that tariffs could be imposed later. He also hinted that fertilizer imported from Canada could be next, saying the heavy duties were being imposed to boost US production.
Trump asks farmers to suggest which countries should face the next round of tariffs
Merrill Kennedy, CEO of Louisiana-based Kennedy Rice Mill, told Trump that India, Thailand, and China were among the main culprits, noting that Chinese shipments were going to Puerto Rico instead of the mainland.
“We haven’t shipped rice to Puerto Rico in years,” Kennedy said. “We’re really struggling in the south.” “The tariffs are working, but we need to double down,” Merrill Kennedy said.
You want more?’ Trump asked in disbelief.
“They shouldn’t be dumping,” he told the farmers gathered for the roundtable. He then asked Treasury Secretary Scott Besant to write a list of countries cited by farmers as sources of unfair competition.
When Kennedy began to outline how India could support its rice industry through illegal subsidies, Trump cut him off before he could finish. “Give me the countries if you can? Go ahead. India, who else? Take note, Scott,” the US president said.
The Treasury secretary again listed India, Thailand, and China as “main culprits” and added, “But there are others, and we can give you a full list.” Trump responded by assuring the group that he would “take care” of the matter quickly.
Bloomberg reported that both Canada and India are pushing for trade agreements to stabilize their economic ties with the United States, but negotiators have struggled to make real progress.
In August, Trump imposed a 50 percent tariff on Indian goods, saying the move was intended to punish New Delhi for its trade barriers and continued purchases of Russian oil.
US delegation visits India to discuss tariffs
A senior delegation from the Office of the US Trade Representative, led by Deputy USTR Rick Switzer, is set to resume trade talks with India this week. The two sides will meet on December 10 and 11 to discuss various issues in an effort to take forward the Bilateral Trade Agreement (BTA).
Commerce Secretary Rajesh Agarwal, India’s chief negotiator, will lead the Indian side in the talks.
New Delhi is still aiming to complete the first phase of the BTA before the end of the year. Speaking at FICCI’s annual general meeting on November 28, Agarwal said he was very optimistic and very hopeful that an agreement could be reached within the calendar year.
