Trump Links Tariffs To New Farm Aid, Flags Indian Rice Imports | World News

U.S. President Donald Trump unveiled a multibillion-dollar farm aid package as he sharpened his criticism of agricultural imports from India and other Asian suppliers and told a White House roundtable that tariffs would be used aggressively to protect American producers.

Trump, who opened the session with farmers, lawmakers and senior cabinet officials, said Monday that the administration would direct “$12 billion in economic aid to American farmers,” financed by customs revenues the United States collects from its trading partners. “If you think about it, we’re literally making trillions of dollars,” he said, adding that countries were “taking advantage of us in ways no one has ever seen before.”

The president said the new aid was needed to stabilize the farm economy in the wake of what he called persistent persistent inflation and low commodity prices. “Farmers are an indispensable national asset that is part of the backbone of America,” he said, arguing that tariffs are central to a strategy to revitalize U.S. agriculture.

India featured prominently as an example during a long debate over rice imports, which a Louisiana producer called destructive to southern growers.

Kennedy Rice Mill CEO Meryl Kennedy told the President that the U.S. market was being hit by “countries dumping rice into this country today,” adding: “Tariffs are working, but we need to double down.” “India, Thailand, [and] He said China has turned to Puerto Rico as a major source of subsidized imports, and this trend has hurt domestic producers. “We have never seen such large imports,” he said, pointing to the WTO case against India and calling for tighter restrictions.

Trump pressed for details. “Why isn’t India allowed to do this? They have to pay tariffs,” he said, instructing Treasury Secretary Scott Bessent to review potential actions. When told that Indian firms have the “two biggest brands” in the US retail rice market, Trump replied: “Well, we’ll take care of that. That’s great. That’s easy… Tariffs again solve the problem in two minutes.”

The tariffs also featured in a broader debate over hostile trade practices affecting soybeans and other crops. Trump said he recently met with Chinese President Xi Jinping and expects large additional purchases. “China … is buying tremendous amounts of soybeans,” he said. “I think he’ll do more than he promised.”

Bessent said the Busan framework Trump negotiated with Xi includes commitments by China to buy “at least 12 million metric tons of U.S. soybeans this growing season, followed by at least 25 million tons annually for the next three years.” He called the $11-12 billion farm package a critical “liquidity bridge” and suggested Trump was “ushering in a new golden age for agriculture.”

For many in the room, trade issues with India were intertwined with concerns about global competition and the future of U.S. commodity markets. Kennedy called on the administration to recognize rice as a “matter of national security” and described rice as “the currency of most of these countries.” He warned that subsidized foreign rice was displacing American products abroad, including in Puerto Rico, once a major market for U.S.-grown grains.

Trump has repeatedly argued that his tariff authority, now the subject of a Supreme Court case, is necessary to combat such practices. “If we had a president who said no, you can’t do that, we would never have lost our chip industry,” he said, tying the debate to agricultural imports.

Several farmers called for faster action. Iowa producer Cordt Holub thanked Trump for the “bridge payment” and said domestic policies like E15 could stimulate domestic markets. Trump: “So E15 is a big deal?” he replied. before promising that the review will continue.

The event also saw administration officials highlighting what they described as a dramatic deterioration in the rural economy under the Biden administration. National Economic Council Director Kevin Hassett said that under the previous administration, “150,000 farms closed” and interest expenses increased. “You wonder why we need this $11 billion, maybe $12 billion … a hole was dug in the previous administration,” he said.

India-US agricultural trade has expanded over the last decade; While India exported basmati, rice products, spices and seafood, it imported almonds, cotton and pulses from the USA. Disagreements over subsidies, market access, and WTO complaints (especially on rice and sugar) periodically strain bilateral negotiations.

China remains the largest buyer of U.S. soybeans, and tariff-related volatility has shaped global commodity flows since 2018. Trump’s increased reliance on tariffs signals potential turmoil for Asian agricultural exporters in the coming months.