President Donald Trump escalated trade tensions on Monday by directly threatening India with steep new tariffs on rice imports unless the practice of “dumping” cheap grains into the American market ceases immediately. Speaking at a White House roundtable with farmers, he unveiled a $12 billion relief package designed to cushion domestic producers from foreign competition, with the entire amount funded by tariff revenues already collected from global trading partners.

The confrontation intensified when a Louisiana rice mill owner revealed that Indian firms now control the two largest retail rice brands sold across the United States. Trump reacted instantly, declaring that such dominance is unacceptable and that tariffs “solve the problem in two minutes.” He accused Asian exporters, led by India, of flooding the market with under-priced rice, driving down domestic prices and forcing American growers into financial distress. He also extended the tariff threat to Canadian fertiliser imports, insisting that protective duties would rapidly revive local manufacturing capacity.

Trump portrayed the measures as a long-overdue correction to decades of unfair trade practices that allowed other nations to exploit open US markets while shielding their own. Labelling American farmers “the indispensable backbone of the nation,” he argued that aggressive tariff leverage is the most effective tool to restore balance and ensure the survival of rural communities battered by low commodity prices and inherited inflationary pressures.

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India-US agricultural trade has grown substantially over the past decade, with New Delhi exporting premium basmati, non-basmati rice, spices, and marine products while importing almonds, cotton, and pulses from America. Yet persistent disputes over subsidies, sanitary standards, and market access barriers have repeatedly stalled negotiations. A high-level US delegation arrives in New Delhi this week for fresh talks, but Trump’s public threats have cast a shadow over prospects for compromise.

With global markets now on edge, exporters and diplomats are scrambling to assess whether the president’s blunt warning will translate into immediate duties or serve as negotiating leverage. One thing remains clear: Trump is doubling down on his protectionist playbook, and Indian rice has been placed squarely in the crosshairs.

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