Trump tariffs may hand Pak basmati market advantage

The 50% tariff imposed by the Donald Trump administration has left Punjab and Haryana basmati growers and exporters deeply worried, fearing severe impact on aromatic grain exports to the US as neighbouring Pakistan gains a significant competitive advantage.

- Gurpreet Singh Nibber

The punitive tariff rate — among the highest imposed on any US trading partner — stems from Trump’s August 7 executive order adding a 25% penalty for India’s Russian oil purchases on top of an existing 25% reciprocal tariff, with the combined levy taking effect August 28.

“It’s a double whammy,” said Ranjit Singh Jossan, vice-president of the basmati exporters association, explaining that India exports nearly 300,000 tonnes (worth $350 million) to the US annually and the steep tariffs will hit exporters hard while giving Pakistan—another major producer, with a 19% levy on its goods —a crucial edge.

Unlike sectors such as smartphones and pharmaceuticals that remain exempt from Trump's tariff offensive, basmati rice faces the full burden of America’s punishment for India’s energy relationship with Russia.

While Trump raised the rate on Indian imports from an initially planned 26% to 50%, it lowered tariffs on Pakistani from 29% to 19%, making Indian grain 31% costlier.