New US Tariff May Make Indian Rice Costlier

01-Aug-2025 08:31 PM

Hyderabad. The US has decided to impose 25 percent import duty on Indian products from August 7, which will increase the difficulties of Indians and Asians living there.

Some varieties of Indian rice are very popular among these immigrants. During the last few months, the prices of many essential commodities have increased significantly in Indian stores located in the US.

The price of a 20-pound bag of Sona Masuri rice in Costco stores has gone up to $20, while it will increase further after the new tariff comes into effect.

An NRI from New Jersey says that to avoid paying duty, Indian food products are now reaching the US with labels of Pakistan or Bangladesh.

Earlier, products manufactured in Pakistan were being sold as Indian products in some US stores because their quality is considered good, but now the situation may change. Only 19 percent import duty has been imposed on Pakistani products in the US.

Millers and exporters say that this 25 percent import duty is actually a short-term measure by the US. If the negotiations for a bilateral trade agreement with India are successful, the tariff on Indian products can be removed or reduced.

But as long as that duty remains in place, there may be some impact on Indian rice exports to the US and especially small buyers may postpone import deals. However, the US is not on the priority list of Indian rice exporters. India's focus is mainly on West Asia, Africa and Europe.