Hypocrisy in grain market: Why Trump's rice tariff threat is more of a concern for US consumers than India
India is the largest producer of rice - 150 million tonnes - and has a 28 per cent share of the global market.
US President Donald Trump has signalled a fresh flashpoint with India as he questioned why New Delhi is allowed to dump rice into the United States market and stressed that tariffs will solve the "problem" easily. Trump said this while holding a roundtable in the White House with representatives of the farming and agriculture sector, along with key members of his Cabinet. During the meeting, the US President also announced USD 12 billion in federal aid for American farmers. Trump's comment holds significance as the US and India prepare for another round of talks in New Delhi on December 10, 2025.
US rice tariff threat: How serious is this for India?
India is the largest producer of rice - 150 million tonnes - and has a 28 per cent share of the global market. It is also the top exporter, with a 30.3 per cent share of global exports in 2024–2025, Indian Rice Exporters Federation (IREF) data shows.
However, according to data available on the website of the India Brand Equity Foundation (IBEF), New Delhi exported about 2.34 lakh tonnes of rice to the United States in the 2024 fiscal. This is less than 5 per cent of its total global basmati rice exports of 52.4 lakh tonnes, and hence not a major concern for India. The dominant destination for Indian rice continues to be West Asia.
Moreover, the Indian Rice Exporters Federation (IREF) has said that India will continue to deepen trade partnerships with other countries and expand new markets for Indian rice.
"While the US is an important destination, India's rice exports are well-diversified across global markets. The Federation, in close coordination with the Government of India, continues to deepen existing trade partnerships and open new markets for Indian rice," Dev Garg, Vice President, Indian Rice Exporters Federation.
US consumers will pay the price for rice tariffs
According to IREF, the impact of US tariffs on rice imports from India is likely to be passed on to American consumers.
Garg also said that all the exports of the US market are demand-driven and demand continues to grow because Indian rice has a very distinct flavour, texture, and colour palette.
"It is not a favour that the US consumer is doing for India, but it is the requirement of the US market... Largely the realisation for Indian farmers and exporters have remained consistent, however, all the tariff hike has been borne by the US consumer...So any steep increase or any further increase in US tariffs will be detrimental to the US consumer itself and will have minimal impact on Indian trade," Garg added.
Hypocrisy of US farm trade demands
Moreover, this aid highlights the hypocrisy of the US using subsidies to protect its farmers but at the same time talking about imposing tariffs on India and pressing New Delhi to open its markets to a wide range of American products, including dairy, poultry, corn, soybeans, rice, wheat, ethanol, fruits and nuts.