Industry executives said the move was unlikely to significantly dent export volumes, but warned of potential wider repercussions, including pressure on prices in other markets, efforts by importers to divert shipments and renewed strain in trade talks where agriculture and dairy imports risk triggering a backlash from Indian farmers.
Trump said earlier this month that more tariffs could be imposed on Indian rice after alleging that grain shipments to the US were being sold below their normal value.
At a White House round table with farming officials on December 8, Trump said: “India, tell me about India. Why is India allowed to do that? … They shouldn’t be dumping. I heard that from others. They can’t do that.”
Tariffs, he added, would “solve the problem in two minutes”.
The US has recently raised import duties on Indian basmati rice to 50 per cent, a substantial increase from the previous 10 per cent rate, making Indian rice considerably more expensive in the American market compared to competitors such as Pakistan, which faces lower tariffs.
