US May Hike Tariffs on Indian Rice, Creating Trade Uncertainty

11-Dec-2025 08:36 PM

New Jersey. Although the US President, responding positively to the demands of the domestic rice industry, has said that India should control its massive rice exports to American markets, otherwise the US administration will have to take some action, Indian exporters say that Donald Trump's threat will not have much effect on India, and instead, an increase in tariffs will only increase the difficulties for ordinary American consumers.

The US mainly imports Basmati rice from India, which cannot be produced there (under that name). In addition, South Indians living in the US are very fond of specific varieties of rice produced in India.

India exports an average of approximately 6 million tons of Basmati rice annually, of which less than 3 percent is shipped to the US. Similarly, the export of non-Basmati rice to the US is also very limited.

Interestingly, a hefty 50 percent tariff has been in place on Indian rice in the US since August 27, 2025, yet American rice millers are still complaining about the dumping of Indian rice, and the US President is also accepting this claim, even though he is unaware of the average monthly volume of rice imported from India.

Industry and trade analysts say that the global demand for premium quality Indian Basmati rice remains very strong, so even if anti-dumping duties or any other kind of barrier is imposed in the US, India will not suffer much loss because its reach is expanding to new markets.