As a delegation headed by Deputy US Trade Representative (USTR) Rick Switzer arrived in New Delhi on Tuesday (India time) to evaluate the proposed trade agreement between the two nations, US President Donald Trump alluded to new tariffs on Indian rice. "They ought not to dump. I mean, other people told me that. "You can't do that," Trump declared, promising to "take care" of the purported commodities dumping in the US market.
Speaking at a White House event, Trump announced $12 billion in new funding for American farmers. Meryl Kennedy, who oversees her family's agribusiness, Kennedy Rice Mill Louisiana, warned Trump that nations like India are "dumping" rice into the US and that southern rice producers are "really struggling."

India is the biggest exporter of rice worldwide. According to government data, India shipped $392 million worth of rice to the US in 2024–2025, while its total rice exports were $12.95 billion. The US currently imposes a 50% tariff on rice imports from India. The US is the fourth-largest market for Indian basmati rice, accounting for $337.1 million of the country's $392 million in rice exports during the previous fiscal year.
According to the Indian Rice Exporters Federation (IREF), the majority of shipments to the US are made in response to advance purchase orders from US-based importers, and exports to the US are still solely driven by demand.

While export realisations for Indian farmers and exporters have remained mostly consistent, evidence from retail markets shows that the majority of the tariff burden has been transferred to US consumers, as evidenced by increased retail pack prices. According to Dev Garg, vice-president of IREF, "the Indian rice export industry is robust and globally competitive."
Trump's warning seems to be motivated more by domestic policy than by trade logic, according to Ajay Srivastava, a former official in the trade ministry and the founder of the think tank Global Trade Research Initiative. According to Srivastava, such taxes would make rice more expensive for American households but would hardly affect Indian exporters, who have robust markets abroad.

In the meantime, Switzer is leading a delegation that will be in India from December 9–11 in an effort to finalize the first part of the trade agreement before the end of the year. On Wednesday and Thursday, senior commerce department representatives will be consulted on all matters pertaining to trade. The party heading to New Delhi to assess the accord includes Brendan Lynch, assistant USTR for South and Central Asia and principal negotiator of the proposed India-US Bilateral Trade Agreement negotiations, as well as other top USTR officials.