US President Donald Trump said India should not “dump” (sell at lower prices) rice in the US market and he would “look into” the matter. Trump warned that this “problem” would be easily solved by imposing tariffs. On Monday (December 8, 2025), Trump held a roundtable at the White House with representatives from the farming and agriculture sectors and key members of his Cabinet, including Treasury Secretary Scott Bessant and Agriculture Secretary Brooke Rollins. He announced $12 billion in federal aid for farmers.
Merrill Kennedy, who runs her family’s rice farming business, Kennedy Rice Mill in Louisiana, told Trump that rice farmers in the South are “really struggling” and that other countries are “dumping” rice on the U.S. market, meaning they are selling it at very low prices.
When Trump asked which countries were selling cheap rice to the US, Kennedy, sitting next to the President, responded, “India and Thailand; even China is dumping rice into Puerto Rico. Puerto Rico was once our largest market for rice. We haven’t shipped rice to Puerto Rico for years.” Kennedy said the tariffs imposed by the Trump administration are working, “but we need to increase them.”
“Why is India allowed to do this?” Trump asked
Trump then turned to Besant and said, “India, tell me about India. Why is India allowed to do this? They have to pay tariffs. Do they have any exemptions on rice?” Besant replied, “No, sir, we are negotiating a trade deal with them right now.” Kennedy also told Trump that a case was pending against India in the World Trade Organization (WTO). Trump said it could be “dealt with very easily.” He said, “This will be solved very quickly by imposing tariffs on countries which are sending goods illegally. Your problem will be solved in a day, so we will have to win the case in the Supreme Court.”
India is the world’s largest rice producer
According to Indian Rice Exporters Federation data, India is the world’s largest rice producer and has 28 percent share in the global market. It is also the top exporter with 30.3 per cent share in global exports in 2024-25. Among the types of rice that India exports across the world, ‘Sona Masoori’ is popular in markets like America and Australia. Trump has imposed 50 percent tariff on India, which is the highest in the world. This also includes 25 percent tariff on purchasing oil from Russia.
