Trump's rice tariffs threat unlikely to have severe impact on exports

NEW DELHI: US President Donald Trump's latest menace to enforce caller tariffs connected atom is improbable to person a terrible interaction connected Indian exports."India exported $392 cardinal worthy of atom to the US successful FY2025, conscionable 3% of its planetary atom exports, and already faces tariffs of astir 53% successful the US market; 86% of these shipments are premium basmati.

New duties would scarcely dent Indian exporters, who person beardown markets elsewhere, but would marque atom costlier for American households," said commercialized probe assemblage GTRI.A bulk of the 6 cardinal tonne exported to the US whitethorn beryllium headed to kitchens of Indian-origin Americans oregon those connected visas. The lone substitute for basmati atom tin beryllium from Pakistan but the quantities are overmuch lower. Overall, a bulk of India's atom exports consists of non-basmati rice.Trump's latest menace comes amid a squad from the US visiting India with talks connected the much-delayed commercialized woody scheduled for Wednesday and Thursday. While the docket for the latest discussions were not instantly known, the sojourn was a astonishment arsenic govt officials had earlier said astir issues had been sorted retired and last-mile talks were expected. News astir the US delegation's travel came up of Russian President Vladimir Putin's sojourn to India.

While Trump has taken unilateral measures connected commercialized since returning to office, India's atom exports are not seen arsenic "dumping" arsenic claimed by the US president, who is not seen arsenic idiosyncratic who ever sticks to facts. Given volumes, neither are atom exports causing harm to home market, nor are they subsidised. As a result, it is seen arsenic a unit maneuver amid talks for a bilateral deal.India and the US had launched negotiations for a commercialized woody successful Feb and hoped to adjacent talks by Sept-Oct. But with govt refusing to hold to Trump's request for reducing levies connected nutrient and GM crops, the US deed backmost with 25% reciprocal tariffs and different 25% secondary tariffs, citing India's acquisition of Russian lipid and defence equipment. In the archetypal phase, which govt is hoping tin beryllium clinched by the month-end, India expects the secondary tariffs to beryllium lifted portion besides seeking concessions connected reciprocal tariffs.Trump, successful the aforesaid event, besides threatened precocious tariff connected agriculture imports from Canada and different countries.