U.S. President Donald Trump has threatened to impose tariffs on Indian rice exports. Dev Garg, Vice President of the Rice Export Federation (IREF), remarked that despite this threat from Trump to increase rice import duties, the demand for Indian rice in the U.S. remains robust.
He noted that all export demands in the American market are based on consumer needs. We've witnessed a surge in the export of Indian rice as the popularity of Indian and South Asian cuisine has grown in the U.S. The taste, texture, and quality of Indian rice are unparalleled, and American-grown rice doesn't compare.
No Damage to India from U.S. Tariffs
Dev Garg clarified that India is not flooding the U.S. with rice, and the market for Indian rice there is stable. He stated that Indian exporters have not suffered from previously imposed U.S. tariffs, and Indian farmers' incomes have remained stable. However, the increased tariff burden has largely fallen on American consumers, who are facing higher food prices as a result.
American Consumers Not Doing a Favor
He added that American consumers are not doing India any favors; rather, it's a necessity for the American market. This statement came after President Trump's warning about imposing new tariffs on Indian rice was made during a discussion on U.S. agricultural subsidies.
Political Statement by Trump
Market experts suggest that Trump's pronouncement is more political than a significant policy indication. The Global Trade Research Initiative (GTRI) noted that while Trump threatens high tariffs on Indian rice, it appears to be posturing rather than policy.
Exporters express that even if the U.S. increases tariffs again, the primary impact will be on American buyers, not Indian trade. Garg remarked that any significant future tariff increase would be more detrimental to American consumers than to Indian trade.
How Much Rice Did India Export to the U.S.?
Notably, during the fiscal year 2024-25, India exported basmati rice worth $337.10 million USD (274,213.14 metric tons) to the U.S., making it the fourth-largest buyer. India also exported $54.64 million USD worth of non-basmati rice, totaling 61,341.54 metric tons.
Threats began in
2023
when President Trump discussed agricultural subsidies.
