By Gurpreet Singh Nibber

A tonne of basmati purchased in the US at $1,200 will cost an additional $600 if imported from India, compared to just $228 extra from Pakistan.

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

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.

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.

Published Date: August 9, 2025