Indian Rice Exporters Hope for Relief as US Tariffs Reduced

03-Feb-2026 09:05 PM

New Delhi. US President Donald Trump has announced a 7 percentage point reduction in the basic customs duty (BCD) on Indian products, lowering it from 25 percent to 18 percent. The revised tariff has come into effect immediately.

A decision is yet to be made on removing the additional 25 percent duty imposed on India for purchasing mineral oil and weapons from Russia.

In this regard, the US President has stated that India has agreed to stop buying mineral oil from Russia and instead import it from the US and possibly Venezuela.

However, there has been no official reaction from India to Trump's claim. If the 25 percent punitive duty is removed and only the 18 percent tariff remains on Indian products, Indian rice will become more competitive in the US market compared to Pakistani rice, as both countries' products currently face a 19 percent tariff.

The Indian Rice Exporters Association says that the 18 percent tariff will help India gain ground in the US rice market and will particularly boost the export of Indian Basmati rice.

There is currently some confusion regarding the tariffs, but the situation is expected to become clearer soon.