Trump’s Tariff Warning Sends Indian Rice Export Stocks Tumbling

Indian Rice Export Stocks Slide After Trump Signals Possible New Tariffs

Indian rice-exporting companies faced sharp declines on Dalal Street after US President Donald Trump cautioned that Washington may impose new tariffs on rice imports from India. His remarks—delivered during an event outlining support measures for American farmers—heightened trade tensions and immediately impacted investor sentiment across agriculture-linked stocks.

Stock Market Reacts to Rising Trade Uncertainty

Kohinoor Foods recorded the largest drop, falling nearly 10% to a fresh 52-week low before recovering part of its losses. LT Foods and KRBL also slipped substantially amid fears that additional US duties could erode competitiveness for Indian exporters. Chaman Lal Setia Exports experienced intraday pressure but later managed to stabilise. The overall sector outlook turned cautious as markets digested the risk of disrupted trade flows.

Trump Repeats Charges of “Rice Dumping”

Trump accused India, Vietnam and Thailand of “dumping” low-priced rice into the US market, arguing that such imports were harming domestic farmers. His comments came against the backdrop of mounting political pressure from rural constituencies ahead of midterm elections. He further suggested that Canadian fertiliser may also face potential tariff action, widening uncertainty across the agricultural supply chain.

Broader Trade Climate Complicates Prospects

The US had already imposed a 50% tariff on several Indian products in August 2025, citing geopolitical concerns. With a US delegation set to visit India soon, analysts believe there is limited likelihood of tariff easing. Additional duties could intensify trade friction at a time when multiple commodities remain under review in Washington.

Exam Oriented Facts

• Indian rice-exporting stocks fell following Trump’s tariff warning.

• Kohinoor Foods dropped nearly 10% before partial recovery.

• Trump accused India of rice dumping in the US market.

• The US imposed a 50% tariff on Indian goods earlier in 2025.