Soon after Russian President Putin’s visit, former US President Donald Trump has once again hinted at imposing new tariffs on India – this time targeting India’s rice export. Trump says that many countries including India are dumping cheap rice in America, causing huge losses to American farmers. He has indicated that the US administration is considering new tariffs on Agri Products, which may mainly include Fertilizer from Canada and Rice from India. Meanwhile, America has also announced a bail out package of 12 billion dollars for its farmers. The direct impact of this news was visible on Indian Rice Stocks—Shares like LT Foods, GRM Overseas and Sarveshwar Foods fell by 7%. Especially LT Foods, whose 46% revenue comes from the US market, and its Golden Star in the US is America’s No.1 Jasmine Rice Brand. India is the world’s largest rice producer, with a production capacity of 150 million tonnes and a share of 30.3% in global exports. India exported 234,000 tonnes of rice to the US in FY24, worth ₹2,849 crore. The news of this possible tariff is coming at a time when talks on Trade Agreements between India and US are already stuck. Agri products remain the biggest bottleneck between the two countries. New tariffs could make trade talks even more complicated.

US President Donald Trump has again shocked the world with his tariff policy. This time the target has been Heavy Duty Truck Industry. Trump announced on his social media platform Trucks worth $15.6 billion came from Mexico and $4.5 billion from Canada. Although the export of trucks from India is nominal, a large part of auto components goes to America. India’s exports worth $6.79 billion (about ₹60,000 crore) are now in danger. This Tariff may cause a loss of ₹ 10,000 to ₹ 12,000 crore to Indian companies. There will be a direct impact on the revenue of companies like Sipra Engineering, RK Industries, Sona Comstar and Samvardhana Motherson because 20-25% of their earnings come from America. This Tariff will not only affect the American Truck Industry will also shock the global supply chain.

The new tariffs, which come into effect from 27 August, have created even more vivid tension in the India-US trade war. Import duty on many Indian products will increase by 50%, while trade talks between India and the US are currently staying. In the midst of this tension, the question arises whether India can turn this pressure into an opportunity? Mahindra Group Chairman Anand Mahindra has described the situation as a ‘brainstorm’ process like the 1991 foreign exchange crisis, from where the country caught the direction of a new progress. He suggests that India will now have to accelerate the pace of its reforms, especially to promote ‘Ease of Doing Business’ for tourism and business. He also called upon the states to come together to create a single window system, which can give investors a fast, transparent and reliable environment. In addition, it will be necessary to strengthen the MSME sector through liquidity assistance, better infrastructure, and production-linked incentive (PLI) schemes. So the question is, is India ready to write a new economic development story by turning this crisis into an opportunity? Come, know your views on this important subject!