Rice 'dumping' in US: Farmers urge Trump to 'double-down' on tariffs targeting India, Thailand, China
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US president Donald Trump on Monday hinted that he may propose fresh agricultural tariffs on countries including India, Thailand and China. After announcing a $12 billion package for farmers on December 9, 2025, Trump was in conversation with Meryl Kennedy of Kennedy Rice Mill while addressing reporters at the White House.
"We do believe that countries are dumping rice into this country (US) today. We have never seen imports of this great (magnitude)," Kennedy told Trump. When the president asked her about the countries that are "dumping rice" into US, she responded by saying it is India, Thailand, China and even Puerto Rico.
"This has been happening for years. It didn't happen during your administration, but unfortunately, we're seeing it in a much bigger way now. The tariffs are working, although we need to double down," she added.
US president Donald Trump asked the United States secretary of the treasury, Scott Bessent, "Why is India allowed to do that ("dumping rice into the US")? They have to pay tariffs. Do they have an exemption on rice?"
November 2025
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United States secretary of the treasury, Scott Bessent replied, "No, sir. We're still working on their trade deal".
US president Donald Trump said "They should not be dumping (rice). They cannot do that".
Indian rice exporters hit
US president Donald Trump's latest remarks have caused fresh uneasiness in the Indian markets with the stock prices of major rice exporters including LT Foods and KRBL declining during early trade. While KRBL shares dropped close to 2.58% to an intraday low of ₹371.30/share, the shares of witnessed a 7.95% fall to an intraday low of ₹362.20/share on the National Stock Exchange.
KRBL, in its latest earnings call had said that the current duty on rice exports stands at 50%, and they expect the ongoing dialogue between the two governments to lead to a new settlement. The management also stated that KRBL's direct exposure to US "remains limited", and therefore the financial impact on the company's business "will be minimal."
However, LT Foods in its latest earnings call had stated that North America accounts for 46% of its overall topline growth and continues to remain a key growth driver with a 47% growth from the same quarter last year. The company's flagship brands include DAAWAT, which is a dominant Basmati brand in India, and Royal, which reportedly commands 54% market share in the region, and 61% share in the Basmati rice import in the US. 'Golden Star', a California-based jasmine rice ((fragrant, long-grain rice) brand, which LT Foods acquired in 2022 through its US subsidiary, is the top selling jasmine rice in the region.
The US under secretary of political affairs, Allison Hooker arrived in India yesterday as trade talks between the two nations continue. The US embassy in a statement said that he visit focuses on advancing the U.S.-India strategic partnership, deepening economic and commercial ties, including increasing American exports. It added that the visit also focuses on fostering collaboration in emerging technologies, including artificial intelligence and space exploration.