Trade talks between India and the US continue without any breakthrough, amidst which President Trump makes another statement saying that he might impose tariffs on imports of rice coming from India. Talking in the white house, he said that he is thinking about imposing new tariffs on agricultural imports from India and fertilisers from Canada.
Trump makes this claim as his biggest supporters, the farmers, are suffering from the effects of tariff policies. The Trump administration has issued an aid of 12 billion for the farmers as he complained that the cheaper imports from countries like India were making it difficult for them to compete. He has not clarified how much tariff will be imposed on the rice imports, though India currently pays a 50 per cent tariff on imports to the US. The penalty tariffs were imposed by the Trump administration over India’s Trade ties and oil supplies from Russia.
The US President questioned the Treasury Secretary Scott Bessent about why India was allowed to dump goods in the US, while farmers continue to suffer from the high prices. He further stated that the rice imports must be taxed to protect the farmers in the US. Replying to the President, Bessemer said that they were still working on the Trade deal.
He went on to emphasise that he will “take care” of the dumping of cheaper rice to the US, from countries like Vietnam, India, and Thailand and protect the farmers who were complaining about rising costs. While experts already point out that the 50% penalty tariffs have added pressure on India’s exports to the US, the new tariffs will add more pressure on the government and economy. What is worse is no progress on the Trade deal between the two countries.
The mid-term elections in the US are scheduled for next year, and with rising inflation and consumer dissatisfaction, President Trump is under pressure to take action, as the popularity of the Republican government is under serious risk. Agriculture has already been pointed out as a major hurdle in the US-India Trade talks, as the US wants India to open its agriculture sector while India has maintained its stance, leading to trouble.
As per reports, a delegation from the US is expected to visit India in a week for further Trade talks. Both sides are hoping for a deal as soon as possible.
