Tuesday, 09 December 2025

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South Asian Update

Economy

Trump threatens to impose new tariffs on India, Canada

 Published: 13:26, 9 December 2025

Trump threatens to impose new tariffs on India, Canada

US President Donald Trump has warned that his administration is preparing to levy new tariffs on India, Canada and Mexico, accusing all three countries of violating trade commitments and harming American producers. 

The remarks, delivered at a White House meeting on Monday, came as Trump unveiled a $12 billion federal support package for US farmers struggling with falling prices and supply pressure.
Trump indicated he is considering duties on Indian rice imports and Canadian fertilizer, claiming foreign competitors are 'dumping' cheap products into the American market and squeezing US farmers. He cited complaints from domestic rice growers who say imports from India, Vietnam and Thailand have depressed prices nationwide. 'We’re going to take care of it,' Trump said, directing his advisers to draw up a list of countries under review.
The president pressed his team for clarity on India’s trade practices, questioning whether New Delhi receives exemptions that allow its rice exports to enter the US market more freely. 'They shouldn’t be dumping,' Trump said, signalling that tariffs are likely unless India agrees to negotiate new terms.
Canada also drew Trump’s ire, with the president arguing that high volumes of imported fertilizer undermine the potential for domestic industry growth. He warned that 'very severe tariffs' could be imposed if Canada does not agree to adjust its export practices. 'We can do it here,' he said, suggesting the administration wants to incentivize American fertilizer production.
Trump further escalated rhetoric toward Mexico, threatening a new five percent tariff for what he said was a violation of a 1944 water-sharing treaty. Posting on Truth Social, he claimed Mexico owes the United States 800,000 acre-feet of water and demanded the release of at least 200,000 acre-feet before December 31. 'The longer Mexico takes, the more our farmers are hurt,' he wrote, linking the dispute to worsening conditions for Texas growers.
Mexican goods already face a 25 percent tariff unless covered under the USMCA trade pact, which the three countries are set to renegotiate in 2026. Trump recently met Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney at the World Cup draw to discuss future trade arrangements, but Monday’s remarks suggest tensions are rising ahead of those talks.

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