Indian rice exporters have dismissed U.S. President Donald Trump’s latest threat to impose additional tariffs on rice imports from India, arguing that any new duties would hurt American consumers far more than India’s export industry. The warning came as part of Trump’s comments targeting agricultural imports from India, Vietnam and Thailand, which exporters say makes it clear that the U.S. administration is focused primarily on non-basmati rice.
Industry leaders noted that basmati rice—India’s biggest rice export to the United States—has a stable and growing demand base that is unlikely to shrink even if tariffs rise. Ajay Bhallotia, General Secretary of the All India Rice Exporters Association, said the U.S. imports nearly five times more basmati than non-basmati rice from India and that the American market’s preferences make substitution difficult. He pointed out that Vietnam and Thailand export only non-basmati rice, reinforcing his belief that Trump’s comments were not directed at India’s basmati segment. Whether the tariff increase will extend to premium basmati varieties remains unclear, he said, adding that exporters must now wait for Washington’s final decision.
The U.S. is India’s fourth-largest destination for basmati, with exports worth $337 million and totaling more than 274,000 metric tonnes in 2024-2025. By contrast, non-basmati exports to the U.S. stand at just $54 million. Even with earlier tariff hikes raising duties from 10 percent to 40 percent, Indian exporters saw minimal disruption, as retailers in the United States largely passed the additional cost on to consumers through higher shelf prices. The Indian Rice Exporters Federation believes the same will occur if new duties are imposed. Their analysis suggests that basmati’s unique aroma, texture and elongation make it irreplaceable in traditional dishes consumed by South Asian and Gulf communities in America, ensuring continued demand.
Industry officials argue that the Indian rice sector remains resilient because its global footprint is broad and diversified, with strong demand across the Middle East, Europe, Africa and emerging markets. They emphasize that India and its exporters are deepening trade relationships and expanding into new regions, reducing dependence on any single market. According to Dev Garg, Vice President of the exporters’ federation, India’s competitive advantage in quality and scale positions it well to withstand tariff shocks from individual countries.
Trump’s comments came during a White House event announcing new financial support for American farmers, where he claimed that cheap imports were depressing domestic rice prices. He promised to “take care” of the issue and signaled that fresh duties were on the table as part of ongoing negotiations with key trading partners. While U.S. growers continue to complain about being undercut, India’s exporters believe Washington’s actions will primarily increase grocery bills in American households rather than affect Indian farmers or exporters.
For now, the Indian industry is watching closely, but remains confident that the strength of its basmati exports—and their cultural and culinary indispensability—will keep demand intact even in the face of new U.S. tariff barriers.
