Major Setback For India Amid India-US Trade Deal Uncertainty! Donald Trump Signals New Tariffs on Indian Rice

United States President Donald Trump signals fresh trade tension as Trump warns that imports of Indian rice and some other farm goods may face new tariffs. Trump alleges that foreign rice is being dumped in the United States and promises to "take care" of the situation that domestic farmers describe as harmful.

US growers say rice prices inside the country have slipped, and many blame supplies from India, Vietnam and Thailand for putting pressure on their income. Trump repeats their concerns at the White House, claiming that these imports challenge local producers and must be tackled through possible tariff action.

Trump tariffs on Indian rice and wider agricultural imports

Trump states that rice shipments from India are part of a wider problem involving agricultural imports. "They shouldn't be dumping," Trump said. "I mean, I heard that, I heard that from others. You can't do that," he said. Trump stresses that the government will respond if current trade rules hurt US farms.

Alongside the warning on Indian rice, Trump also targets fertiliser supplies coming from Canada. On this issue, Trump says, "A lot of it does come in from Canada, and so we'll end up putting very severe tariffs on that, if we have to, because that's the way you want to bolster here," he said, adding, "And we can do it here. We can all do that here."

Trump tariffs, Indian rice and the $12 billion farm aid package
Trump uses the same White House event to unveil a fresh support package for American agriculture worth USD 12 billion. The plan aims to help farmers dealing with weak crop prices and ongoing trade disputes. Most of this aid is directed at row crop producers through a specific Agriculture Department scheme.

The distribution of the package is divided between major row crops and other produce that falls outside the main scheme. Details released at the event state that USD 11 billion is earmarked for one-time payments under the Farmer Bridge Assistance program, while USD 1 billion will support additional crops not covered by that channel.

Farm aid component Amount (USD)

Payments to row crop farmers under Farmer Bridge Assistance program 11 billion
Support for other crops outside the program 1 billion.

Total announced farm aid package 12 billion

Trump insists that this economic assistance will not raise fresh taxes, arguing that it will instead use revenue from tariffs already applied on imports. Trump says the funds will come from "taking a small portion" of tariff income and notes that current tariff rates are among the highest imposed by a US administration in nearly one hundred years.

Earlier Trump tariffs on Indian rice, trade deal talks and Indian response
The latest comments on Indian rice arrive after the Trump administration imposed broad 50 per cent tariffs on Indian goods earlier this year. Washington described these as a response to trade barriers, and also added a separate 25 per cent levy linked to Delhi's purchase of Russian crude oil, raising overall duties sharply.

New Delhi strongly criticised those steps, labelling the US measures "unfair, unjustified and unreasonable". The tariffs were introduced while India and the United States were discussing a bilateral trade agreement. Five negotiating rounds for the first phase of that deal have taken place so far, and both capitals continue to work on remaining issues.

Officials from Washington and New Delhi have suggested that a trade deal is close, even as tariff disputes remain. A US delegation is scheduled to travel to India this week for more talks on the agreement. At the same time, Trump keeps signalling that additional tariffs on products, including Indian rice, remain an option.

Trump's latest statements also highlight the political weight of the US farm sector, which has served as an important support base for Trump. The combination of possible tariffs on Indian rice and fertiliser, plus the USD 12 billion aid package, shows that Trump is tying trade policy and domestic farm relief closely together.