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On Monday, US President Donald Trump hinted that his government would impose additional tariffs on agricultural imports, particularly Canadian-sourced fertilizer and Indian rice. In addition to announcing a USD 12 billion support package for American farmers experiencing increasing economic difficulties, he made these remarks during a meeting at the White House.

The comments show how the Trump administration is becoming increasingly frustrated with the lack of significant progress in trade talks with Canada and India. Trump stated that more stringent regulations might now be required to protect American manufacturers from growing competition.

Allegations of “dumping” Indian rice

Trump reaffirmed the worries expressed by US rice farmers at the discussion, who assert that imports from Thailand, Vietnam, and India have lowered domestic prices. The president declared that he was committed to combating what he called the “dumping” of rice from other countries onto the US market.

“Scott, India,” President Donald Trump asked his advisors over India’s trade policies. Tell me about India. Why is that permitted in India? They must impose tariffs. Are they excluded when it comes to rice? “No, sir,” Scott Bessent stated in answer. Their trade agreement is still being worked on.

Trump persisted, telling his team to “give me the countries if you could” and stating that the nation “shouldn’t be dumping.” “Mark it down, Scott,” he said, indicating that he intended to investigate the matter further.

He declared, “They shouldn’t be dumping.” “Others told me that. You are unable to accomplish that. At a time when production prices are growing and prospects outside are still scarce, farmers have claimed that cheaper imported rice has reduced their market share.

Trump strongly hinted that tariffs would be used as a tactic if India doesn’t agree to reform its export procedures when he stated he will “take care” of the situation.

Fertilizer from Canada

The president also mentioned the large amount of fertilizer that is imported from Canada and hinted that new taxes would be applied to this industry. Tariffs, he claimed, may promote greater home manufacture.

“We’ll end up putting very severe tariffs on that, if we have to,” he stated. “A lot of it does come in from Canada.” “You wish to support this in this manner. We can accomplish that here as well.

Trump has frequently voiced concern that the nation’s larger economic objectives are compromised by reliance on imported agricultural inputs, particularly at a time when growing consumer prices and inflation are still politically sensitive problems.

Farmers are under increasing strain.

One of Trump’s most devoted supporters, American farmers, have had to deal with volatile markets and rising prices that are partially related to earlier tariff choices. Although the USD 12 billion plan launched on Monday is intended to offer immediate relief, the industry is nonetheless badly impacted by the uncertainties around potential future trade actions.

Imports of fertilizer and rice highlight broader concerns about supply chains and competition for many farmers in a challenging economic climate.

Continued trade talks with Canada and India

Significant progress has been difficult to make in trade negotiations with Canada and India. In response to New Delhi’s trade restrictions and its imports of energy from other providers, the US levied 50% tariffs on a number of Indian goods earlier this year. This week, a US delegation is scheduled to travel to India, but officials do not anticipate much progress.

There has also been tension in relations with Canada. In the past, Trump has hinted that the North American trade pact itself might be reexamined and threatened to impose greater duties on goods that are not covered by it.

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