Exporters in India say U.S. President Donald Trump’s latest threat to impose additional tariffs on imported rice is unlikely to disrupt India’s rice trade, even though the United States remains a major buyer of premium Basmati. Trump’s comments, delivered during an event announcing new aid for American farmers, suggested that the U.S. may target rice shipments from India, Vietnam and Thailand as part of a broader effort to protect domestic growers. Indian officials and trade bodies, however, say any economic fallout will be felt more strongly by American consumers than by Indian exporters.
Industry representatives noted that Trump grouped India with Vietnam and Thailand, two countries that ship only non Basmati rice to the U.S. This has led many to believe that the proposed tariffs are primarily aimed at non Basmati varieties. Ajay Bhallotia of the All India Rice Exporters Association said it remains unclear whether the new levies would also affect Basmati, which accounts for the bulk of Indian rice exports to the United States. India ships roughly five times more Basmati than non Basmati rice to the American market, making clarity on tariff scope essential for exporters.
The United States is the fourth largest market for Indian Basmati. In the 2024 to 2025 financial year, India exported more than 274,000 metric tonnes of Basmati to the U.S., worth $337.10 million. Non Basmati shipments were much smaller at $54.64 million. Combined, Indian rice exports to the U.S. were valued at nearly $390 million. Even after earlier tariff hikes that raised duties from 10 per cent to 40 per cent, exporters reported little disruption in trade. Most of the cost increase was absorbed into retail prices in American stores, while Indian producers continued to receive stable returns.
Exporters argue that U.S. consumers are likely to bear the impact of any new tariffs because Indian Basmati has no true domestic substitute. Its aroma, texture and elongation make it central to dishes such as biryani, and demand in the U.S. is driven largely by South Asian and Gulf communities whose preferences cannot easily be met by local American rice. The Indian Rice Exporters Federation said that evidence from retail markets shows most tariff burdens have been passed on to buyers and that demand for Basmati remains steady as Indian cuisine becomes increasingly popular.
Industry leaders also say India’s rice sector has proven highly resilient, with diversified global markets and expanded trade partnerships reducing reliance on any single buyer. Dev Garg of the Indian Rice Exporters noted that India is continually opening new markets and strengthening existing agreements. Trump’s remarks, which include allegations of “dumping,” come as U.S. farmers face depressed prices and heightened competition. While the U.S. president claims new measures would help domestic growers, Indian exporters warn that higher duties on Basmati would primarily raise grocery bills for American households rather than disrupt India’s thriving global rice trade.
