US President Donald Trump’s recent comment suggests that he may bring in new tariffs on some agricultural imports,  especially Indian rice and Canadian fertiliser. His remarks come at a time when the US is still stuck in long, difficult trade talks with both countries.

Trump made these comments on Monday during a White House event where he announced billions of dollars in fresh aid for US farmers. According to these farmers, cheaper imports are making it hard for them to compete in the market.

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Trump considers fresh tariffs on Indian rice

Trump told the crowd that he would “take care” of “dumping of Indian rice into the US.” Several American rice farmers believe that countries like India, Vietnam and Thailand are selling their rice at lower prices, causing US rice prices to drop.

“They shouldn’t be dumping,” Trump said. “I heard that from others. You can’t do that.” Turning to United States Secretary of the Treasury, Scott Bessent, Trump asked, “Why is India allowed to do that (“dumping rice into the US”)? They have to pay tariffs. Do they have an exemption on rice?” To which Bessent replied, “No, sir. We’re still working on their trade deal.” Trump then repeated, “They should not be dumping (rice)…They cannot do that.”

Trump also hinted that he could target fertiliser coming from Canada if needed. He said the US could increase domestic production if imports became too cheap. “A lot of it comes in from Canada,” Trump said. “We’ll end up putting very severe tariffs on that, if we have to, because that’s the way you bolster here. And we can do it here.”

Both India and Canada want stable long-term trade deals with the US. But negotiators on all sides have struggled to reach agreements. In August, Trump placed 50% tariffs on Indian goods, saying India had too many trade barriers and was buying Russian oil. A US team is visiting India this week for further talks, but no major breakthrough is expected yet.

Pressure from farmers and rising inflation

According to a Bloomberg report, Trump is facing strong pressure to deal with high consumer prices and stubborn inflation. These issues are strongly impacting voters’ sentiment as well, and that frustration poses a political risk for Republicans ahead of next year’s midterm elections.

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Farmers — traditionally strong Trump supporters — have also been struggling, largely because of market changes and partly because of Trump’s own earlier tariff policies. However, if fertiliser tariffs come in, they could cause fresh worries for US farmers, who have already been battling rising costs for several years.

Canada is America’s biggest supplier of potash, a key fertiliser ingredient. So far, Canadian shipments haven’t been impacted on a large scale because they fall under a tariff exception tied to the North American trade agreement. But, according to Bloomberg, any new fees would be added on top of the challenges farmers are already facing,  including with phosphate, another fertiliser that the US mostly imports.

Both potash and phosphate were added to the US list of “critical minerals” in November, which farmers hoped would protect global supply and support US production.