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India 'shouldn't do this': Why Donald Trump is mulling more tariffs on India amid 50% levy
When Donald Trump asked which countries are dumping rice into America, Meryl Kennedy replied, "India, Thailand, and even China into Puerto Rico.
US President Donald Trump on Monday said that India should not be "dumping" rice into the US market and that he will "take care" of it, suggesting new tariffs on top of the already existing 50 per cent levy.
Trump claimed that tariffs would easily solve the “problem” during a roundtable in the White House with representatives of the farming and agriculture sector as well as key members of his cabinet, including treasury secretary Scott Bessent and agriculture secretary Brooke Rollins.
Meryl Kennedy, who runs her family's agribusiness, Kennedy Rice Mill, in Louisiana, told Trump that rice producers in the southern part of the country are "really struggling" and that other nations are "dumping" rice into the US.
When Trump asked which countries are dumping rice into America, Kennedy replied, "India, Thailand, and even China into Puerto Rico. Puerto Rico used to be one of the largest markets for US rice. We haven't shipped rice into Puerto Rico in years."
Kennedy stated that this issue has been ongoing for years and did not begin during the Trump administration. "But unfortunately, we're seeing it in a much bigger way now," she said.
She said that tariffs imposed by the Trump administration are working, “but we need to double down”, to which Trump said, "You want more, I understand".
Trump then turned to Bessent and said, “India, tell me about India. Why is India allowed to do that? They have to pay tariffs. Do they have an exemption on rice?”
"No, sir, we're still working on their trade deal," Bessent replied.
Trump then said, "But they shouldn’t be dumping. I mean, I heard that. I heard that from others. They can’t do that."
Kennedy then told Trump there's a World Trade Organisation case against India.
The Republican leader instructed Bessent to note down the names. He said this will be “so easy to settle”.
"It's solved so quickly with tariffs to these countries that are illegally shipping. It's solved. Your problem is solved in one day. That's why we have to win the Supreme Court case," he said, adding that this problem will be solved in “one day”.
50 per cent tariff on India. More incoming?
Donald Trump has imposed a 50 per cent tariff on India, the highest in the world, including a 25 per cent tariff on Delhi's purchases of Russian oil.
Lower courts in the US have ruled that Trump's use of emergency powers to impose tariffs on nations worldwide is illegal, and the case will now be decided by the Supreme Court. A US delegation is expected to visit India this week for further talks, although no major breakthrough is anticipated.
Trump stated that America lost half of its car and chip industries because these products were being manufactured in other countries, and previous administrations had not imposed tariffs on these imports into the US.
India is the largest producer of rice, with 150 million tonnes, and holds a 28% share of the global market. It is also the top exporter, with a 30.3 per cent share of global exports in 2024–2025, according to Indian Rice Exporters Federation (IREF) data.
According to information on the India Brand Equity Foundation (IBEF) website, India exported approximately 2.34 lakh tonnes of rice to the US in the 2024 fiscal year, which is less than 5 per cent of its total global basmati rice exports of 52.4 lakh tonnes.
West Asia remains the dominant destination for Indian rice, it said.
Among the rice varieties that India exports globally, 'Sona Masoori' is preferred in markets such as the US and Australia.
