A fresh round of tariff threats from US President Donald Trump jolted the Indian stock market on Tuesday, especially shares of top rice exporters. Trump, addressing a White House gathering with US farmers, said that cheaper imports from nations such as India, Thailand and Vietnam were hurting domestic growers.
“They shouldn’t be dumping,” Trump said. “I heard that… You can’t do that.” Investors reacted instantly. Stocks of major rice exporters plunged, with some hitting 52-week lows within minutes.
Steep Drop in Major Exporter Stocks
Shares of Kohinoor Foods suffered the steepest fall, sliding nearly 10%, to an intraday low of around ₹24.41 on BSE. This marked one of the lowest prices the share has seen in a year.
LT Foods also fell hard, down around 6–7% at one point, while KRBL saw a drop of roughly 2.5–3%. Other exporters, including Chaman Lal Setia Exports, were not spared: shares slid 4–5% before a modest intra-day recovery.
Why is Trump Targeting Indian Rice?
The Trump administration argues that imports of cheaper rice constitute “dumping” selling at below-market or unfairly low prices. US farmers claim this undercuts their livelihoods. During the meeting, Trump singled out India.
He also announced a $12 billion aid package for US farmers — underlining the domestic political pressure building ahead of next year’s elections.
What This Means for Indian Rice Exports?
On paper, India has little to fear — at least according to some analysts. Even with current duties, the US accounts for a small fraction of India’s total rice exports. A fresh duty may affect export economics, but exporters may still manage due to diversified global demand.
Still, the renewed tariff talk casts a shadow of uncertainty. For companies heavily reliant on US markets (directly or via supply chains), profit margins and future orders may get squeezed.
Market Sentiment & Trade Tensions
The tariff warning led to broader investor caution. Export-oriented stocks came under pressure, and trade uncertainty added to volatility in the Indian equity market.
The episode also underscores growing tensions between Washington and New Delhi, especially as both sides navigate trade negotiations with little immediate resolution in sight.
