Trump to impose extra tariff on Indian rice:US President accuses New Delhi of dumping cheap rice, causing losses to American farmers

US President Donald Trump said his administration is considering to impose additional tariffs on rice imported from India and fertilizer from Canada. Trump argued that low-priced imports are hurting American farmers. He made the statement at the White House while unveiling a fresh financial aid package for the agricultural sector. According to Trump, countries such as India, Vietnam and Thailand are selling rice in the US at prices that undercut local producers, squeezing their earnings. He termed the practice ‘dumping’ and insisted it must stop. During the briefing, Trump also asked his Treasury Secretary whether India had been granted any special exemption on rice trade. The Secretary replied that discussions between the two nations are still underway and no final agreement has been reached.
Extra tariffs possible on fertilizers from Canada Trump also said that he could slap steep tariffs on fertilizers imported from Canada if prices drop too low. He said a significant share of America’s fertilizer, especially potash comes from Canada, and that strict duties may be imposed ‘if it becomes too cheap’. Canada is currently the biggest supplier of potash to the US, and the trade agreement between the two countries has so far shielded these imports from heavy restrictions. Trump’s remarks come at a time when inflation and rising prices are putting pressure on his campaign. Farmers, already grappling with higher input costs, fear that any new tariff on fertilizers would push their expenses even higher. Although US recently added potash and phosphate to its list of critical minerals to secure supply, farmers say uncertainty over prices and potential tariffs remains a major concern. What does dumping means? Dumping happens when a country sells its products in another nation at prices so low that local companies and farmers cannot compete. As a result, the market gets flooded with cheap imported goods, and local businesses start facing heavy losses. Gradually, foreign products dominate the market and push domestic producers to the sidelines. If Trump goes ahead with higher tariffs on Indian rice, the price of Indian rice in the US will shoot up. This means people who prefer Indian rice will have to pay more. On the other hand, Indian farmers and exporters, especially those who send a major share of their produce to America may also take a hit. With higher prices in US market, the demand for Indian rice is likely to fall, leading to possible losses for growers and traders back home. 50% tariff on India Trump has now raised the total tariff on India to 50%. Out of this, an additional 25% duty has been slapped specifically because India continues to buy Russian oil. Under his *America First* approach, Trump has earlier targeted several foreign goods with similar trade barriers. Media reports say India does not ship large quantities of rice to the US. So the move will not shake the entire rice industry, but exporters dealing directly with the American market are likely to feel the pinch. They may soon have to scout for new destinations to redirect their shipments.