'Can't dump rice here'; US President Donald Trump issues fresh tariff threat against India

WASHINGTON: US President Donald Trump threatened to impose new tariffs on rice imports from India. Trump's threat comes after US farmers alleged that subsidised rice from India is being sold at low prices in the US market, undermining their domestic prices. Trump made this statement during a White House roundtable discussion announcing a $12 billion aid package for American farmers. Reports say that the Trump administration is also considering imposing new tariffs on agricultural products, including fertiliser, from Canada.

Farmers attending the meeting complained to Trump that subsidised rice imports were undermining US markets and driving down domestic prices. Trump responded to the farmers by calling the Indian move a "cheat" and hinted at the possibility of imposing tariffs. Meryl Kennedy, CEO of Louisiana-based Kennedy Rice Mill, told Trump that India, Thailand and China were the main countries supplying rice at low prices. Meryl said farmers in the Southern states were facing a crisis.

Meryl called for the tariffs to be doubled in force. Trump asked, somewhat surprised, “Do you want more?” The US president then asked Treasury Secretary Scott Besant to list the countries that were unfairly competing with American farmers. The Treasury Secretary again singled out India, Thailand, and China as the main countries selling rice at low prices. Trump assured farmers that he would “fix” the problem quickly.

A senior delegation from the US Trade Representative's Office will arrive in India this week to discuss a Bilateral Trade Agreement (BTA) to strengthen trade ties. The team, led by Deputy USTR Rick Switzer, will hold talks tomorrow and the day after. Chief Negotiator and Commerce Secretary Rajesh Agarwal will lead the Indian side.

Agarwal had told the FICCI annual general meeting on November 28 that he was very confident that the first phase of the BTA could be completed by the end of this year. Trump had imposed a 50 per cent tariff on Indian products in August.