The Trump administration unveiled a two-pronged approach to agricultural policy on Monday, combining $12 billion in direct support with threats of new tariffs on foreign competitors. The strategy reflects the president’s belief that American farmers need both immediate financial relief and long-term protection from international competition.
Meryl Kennedy, CEO of Kennedy Rice Mills and 4 Sisters Rice, provided the impetus for the tariff consideration by briefing Trump on conditions in the rice market. Kennedy explained how imports from countries with lower production costs have driven down prices, creating financial pressure on American operations.
Trump examined evidence that India, Thailand, and China export rice to the United States at prices domestic producers consider unfairly low. The president questioned why such practices continue, asking his treasury secretary whether India enjoys special exemptions from import duties that would normally discourage dumping.
Treasury Secretary Scott Bessent indicated that comprehensive trade discussions with India are ongoing, implying that rice policy might be negotiated as part of a broader agreement. Trump rejected this patient approach, insisting that dumping must be addressed immediately through unilateral action if necessary.
The president also identified Canadian fertilizer as a target for potential tariffs, arguing that import restrictions would boost American production. Trump contends that developing domestic capacity in critical agricultural inputs reduces foreign dependency, though economists note that protectionist policies often have unintended consequences, including higher costs and supply disruptions.