On​‍​‌‍​‍‌​‍​‌‍​‍‌ Monday, US President Donald Trump indicated that he might impose new tariffs on Indian rice. The US President’s remarks came while India and the US were holding trade talks which have not yielded any significant results so far. Pressed about the issue in a White House meeting, Trump said fresh tariffs on some agri products were on his mind. He cited Indian rice and Canadian fertilizer as his two biggest worries.

The President’s comment came in a setting where farmers in the US, who constitute a major part of his people, are going through a hard time due to increasing costs and market pressure.

One of the ways to help farmers is the $12 billion new aid program announced by Trump. Farmers claim that cheap imports from countries like India, Vietnam, and Thailand have flooded the US rice market and thus, the prices of rice in the US have been going down.

Trump was quoted as saying, “Why is India ‘allowed’ to ship rice to the US without us putting high tariffs on it?” After he inquired with Treasury Secretary Scott Bessent whether India had any special provision, Bessent replied that there was no such thing and that negotiations were still ongoing. In response to that, Trump said that he would “take care” of what he called the “dumping” of Indian rice into American markets.

Currently, India applies a 50% tariff on a number of goods. These tariffs were laid on India in August as a punishment for India’s continuing oil trade with Russia during the Ukraine conflict. Trump has not indicated how much more additional duty he might impose or when it could be effective.

The talks on trade between New Delhi and Washington are at a standstill. Agriculture has been the most prominent thorn in the side in these talks. The US demands India to liberalize its farm sector, but India is still firm. Later this week, a US delegation will be in India for the continuation of talks.

At the same time, Trump is required to keep inflation and the rising of consumer prices under control, issues that may affect voter sentiment and the result of midterm elections next ​‍​‌‍​‍‌​‍​‌‍​‍‌year.