5 Stocks falls by up to 4% after Trump issues tariff warning on Indian rice

Synopsis:- Trump’s warning of new tariffs on Indian rice and Canadian fertiliser has intensified trade concerns ahead of the December 10–11 negotiations. With the US already imposing a 50% duty on Indian rice, the threat of further action has pressured key rice exporters and heightened market volatility.

India accounts for nearly 40% of global rice exports, with the U.S. importing over 200,000 metric tons annually. Indian rice, especially basmati and non-basmati varieties, holds a key share in America’s ethnic and premium food markets, reflecting strong trade ties and growing consumer demand for authentic Indian staples.

US President Donald Trump has hinted at new tariffs on agricultural imports, including Canadian fertiliser and Indian rice, as part of efforts to protect domestic farmers. While announcing a $12 billion support package, he said US growers are struggling to compete with cheaper imports and accused some countries of dumping products in the American market. 

US farmers have accused India, Vietnam, and Thailand of dumping rice into the American market, which they say is pushing prices down and hurting their income. Responding to these concerns, President Trump criticized the alleged dumping practices, stressing that such actions are unacceptable. He reiterated that he has heard similar complaints from multiple sources and vowed to “take care” of the issue, though he stopped short of outlining any concrete measures or timelines for potential action.

Trump’s comments arrive days before a US trade delegation, led by Deputy Trade Representative Rick Switzer, reaches India for tariff discussions on December 10–11. The timing adds weight to the upcoming talks, where both sides are expected to address concerns around agricultural imports and potential trade implications of new tariff actions.

Indian rice exports to the US already face a steep 50% tariff, yet further action remains possible as Trump considers additional measures. He also hinted at targeting Canadian fertilizer imports to support US producers, raising concerns since Canada is America’s largest supplier of potash, a key input for farmers.

KRBL’s management acknowledged that Indian rice exports currently face a 50% duty but expressed hope that ongoing government-level discussions could lead to a more favourable settlement. They indicated direct exposure to the US remains limited, and therefore, the financial impact on our business will be minimal,” the management had stated.

LT Foods highlighted its strong presence in North America, which contributes 46% to its total revenue and grew 47% year-on-year. Its flagship brand holds a dominant 61% share of the US basmati market, while Golden Star leads the Jasmine rice category, underscoring the company’s robust positioning despite tariff uncertainties.

Here are the stocks in focus after US President Donald Trump hinted at new tariffs on agricultural imports:

Written by Abhishek Singh

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