Economy

Trump signals new tariff pressure on India and Canada

Washington, D.C. — US President Donald Trump has signaled a renewed willingness to impose tariffs on key agricultural imports, warning that rice from India and fertiliser from Canada could be the next targets as Washington’s trade discussions with both countries drag on without a breakthrough.

Trump issued the warning on Monday, December 8, 2025, during a White House event unveiling a multi-billion-dollar relief programme for American farmers, using the moment to sharply criticise import flows that he claims have undermined domestic producers.

The assistance package—amounting to about $12 billion—will be financed through tariff revenues the US has collected from a range of trading partners.

“We’re bringing in unbelievable amounts of money,” Trump said, again accusing foreign suppliers of having “taken advantage” of the United States for years.

He described farmers as “an indispensable national asset” and insisted tariff tools remain central to his strategy of reviving the agricultural sector and insulating it from what he described as inherited economic pressures.

India featured prominently in the discussion, particularly over rice imports, which US producers—especially in southern states—argue have depressed local competition.

 When informed that Indian firms now control two of the biggest brands in the US retail rice market, Trump responded: “We’ll take care of it. Tariffs solve the problem in two minutes.”

He accused foreign suppliers of “dumping” and suggested that tougher measures were inevitable if negotiations continue to stall.

Canada also came under scrutiny, with Trump pointing to fertiliser imports as an area where he believes the US should regain self-sufficiency.

 “A lot of it comes in from Canada,” he said. “We’ll end up putting very severe tariffs on that if we have to, because that’s how you bolster local production. We can do it right here.”

Agricultural trade has long been a sensitive pillar of US relationships with both India and Canada.

India exports a broad basket of goods to the American market—including basmati rice, spices, and marine products—while purchasing US pulses, cotton, and almonds.

But recurring disputes over subsidies, market access, and World Trade Organization complaints—especially involving rice and sugar—have repeatedly complicated negotiations.

Trump’s remarks signal that the administration is ready to escalate pressure if the impasse continues, raising the likelihood of another tariff confrontation that could reshape global agricultural supply chains.

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