Trump Signals Fresh Tariffs on India and Canada, Targets Cheap Rice and Fertilizer Imports
US President Donald Trump has once again hinted at a tough stance against India and Canada. Trump has stated that the US is considering imposing additional tariffs on rice imported from India and fertilizer imported from Canada. He claims that cheap goods from other countries are causing significant losses to American farmers.
Announcing financial assistance for farmers at the White House, Trump stated that countries like India, Vietnam, and Thailand are selling rice in the US at very low prices, which he described as "dumping." Trump asked his Finance Minister if India had received any concessions on rice. The Minister replied that negotiations for a trade agreement between the two countries are ongoing.
Trump also took a tough stance against Canada, saying that if necessary, he could impose strict tariffs on potash fertilizer imported from Canada. Currently, Canada is the US's largest supplier of potash and has been protected by trade agreements.
Recently, Trump has been under considerable pressure regarding inflation and rising prices in the US. Farmers are suffering from rising costs, and imposing new tariffs on fertilizer could further worsen their difficulties. The US has already added potash and phosphate to the list of critical minerals to ensure their supply is not affected.
Understand, in simple terms, what is dumping?
When a country sells its products to another country at a very low price, so that local companies cannot compete at that price, this is called dumping. Gradually, that country's market becomes flooded with foreign goods, and local industries begin to weaken.
The US has already imposed a 50% tariff on India.
Under his "America First" policy, Trump has already imposed heavy tariffs on foreign products. A total of 50% tariffs have been imposed on India, which includes an additional 25% tariff imposed for purchasing Russian oil.
Although experts believe that since the US does not import much rice from India, the impact on the Indian rice industry as a whole will be limited. However, exporters dependent on the US will face increased difficulties.
