Higher tariff on Indian rice will burden US consumers, India looking for new markets: Experts
The Indian Rice Exporters Federation says US tariffs on Indian rice are largely passed on to American consumers and will not significantly affect India’s diversified export base. While President Trump threatened an additional 25 percent tariff, trade experts view this as political messaging rather than a serious policy move.
The Indian Rice Exporters Federation (IREF) has said that the impact of US tariffs on rice imports from India is likely to be passed on to American consumers, reflecting the product’s essential nature in the consumer basket.
It also stated that India will continue to deepen trade partnerships with other countries and expand new markets for Indian rice.
The Federation highlighted that, “While the U.S. is an important destination, India’s rice exports are well-diversified across global markets. The Federation, in close coordination with the Government of India, continues to deepen existing trade partnerships and open new markets for Indian rice….. Evidence from retail markets indicates that most of the tariff burden has been passed on to U.S. consumers.
” However, experts also noted that the latest remarks by US President Donald Trump, threatening to impose an additional 25 per cent tariff on Indian rice exports to the United States, appear to be driven more by domestic political messaging than a major policy shift.
The Global Trade Research Initiative (GTRI), an Indian think tank working in the field of trade, said the announcement made on December 8 alongside a new US farm relief package appears to be election-season communication targeted at U.S. farmers.
The think tank stated, “Trump threatens to impose high tariffs on Indian rice. But the threat is politics, not policy.”
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Source : The Economic Times
