US President Donald Trump on Tuesday signalled a contemporary flashpoint with India questioning why New Delhi is “allowed” to ship massive volumes of rice to the USA with out dealing with extra duties, indicating that new tariffs could possibly be on the desk as commerce talks wrestle to advance.The remarks got here throughout a White Home assembly the place Trump launched a $12-billion help package deal for American farmers, a core constituency that has been urgent him to counter rising imports.
In an trade with US Treasury Secretary Scott Bessent, Trump requested, “Why is India allowed to try this (‘dumping rice into the US’)? They need to pay tariffs. Have they got an exemption on rice?” When Bessent replied, “No, sir. We’re nonetheless engaged on their commerce deal…”, Trump was agency. “They shouldn’t be dumping (rice)… They can not try this…”Farmers in a number of states have complained of falling costs and intensified competitors from rice-exporting nations comparable to India, Vietnam and Thailand. Trump advised them he would “take care” of the difficulty, insisting, “They shouldn’t be dumping. I imply, I heard that, I heard that from others. You may’t try this.”Additionally learn: Subsequent spherical of talks to start out from December 10; ‘not a proper’ dialogue, sources sayTrump’s feedback come as either side put together for one more spherical of commerce talks in New Delhi on December 10.
Trump rolls out $12bn lifeline for struggling farmers
Trump moved to reassure America’s farm belt with a contemporary $12 billion help package deal, calling it important aid for growers nonetheless coping with the fallout from current commerce disruptions. He advised farmers on the White Home roundtable that the funds would supply “much-needed certainty” as they take this yr’s harvest to market and plan for the following season. The programme channels $11 billion to row-crop producers by means of one-time bridge funds, with the remaining funds put aside for different commodities as soon as the main points are finalised.Additionally learn: US deputy ambassador for commerce to go to India; discussions resume this weekAgriculture Secretary Brooke Rollins stated the funds will likely be transferred by February 28 and described the package deal as a stabilising measure till wider advantages from new commerce agreements materialise. Treasury Secretary Scott Bessent characterised the help as a “liquidity bridge throughout a interval of adjustment”, arguing that many farmers are nonetheless recovering from misplaced export markets and excessive manufacturing prices. The cash will likely be drawn from the Commodity Credit score Company and offset by tariff income, in keeping with the administration.Trump claimed the sector had been “crushed by the worst inflation in fashionable historical past and crippling restrictions on power, water and numerous different requirements”, whereas once more insisting that international opponents had lengthy benefited from unfair buying and selling phrases. He stated he had urged China’s President Xi Jinping to develop soybean purchases past commitments already made, including, “I believe he’s going to do greater than he promised to do.”Critics questioned the strategy, with Senator Amy Klobuchar saying the only method to supply certainty could be to finish tariff-driven stress on farmers.The push for brand spanking new duties comes in opposition to the backdrop of persistent friction in US–India commerce ties. Earlier this yr, Washington imposed a mixed 50 per cent tariff on Indian items. Negotiations on the Bilateral Commerce Settlement (BTA), first proposed in February, intention to lift commerce from USD 191 billion to USD 500 billion by 2030, however progress has been slowed by shifting tariff insurance policies and disagreements over market entry.Indian officers stay optimistic. Commerce Secretary Rajesh Agarwal not too long ago stated New Delhi was “very hopeful” of finalising the primary tranche of the settlement throughout the yr. The federal government has additionally been assessing the impression of a collection of US measures, together with reciprocal tariffs underneath emergency powers and adjustments to H-1B visa guidelines that would have an effect on expert employees.In the course of the tackle, Trump additionally stated he may goal fertiliser coming from Canada, arguing that home manufacturing should be inspired. “Plenty of it does are available from Canada, and so we’ll find yourself placing very extreme tariffs on that, if we’ve got to, as a result of that’s the best way you wish to bolster right here,” he stated. “And we are able to do it right here. We will all try this right here.”
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