Trump’s 50% tariff on India gives Pakistan a golden chance in US rice market

A trade dispute between Washington and New Delhi has unexpectedly opened the door for Pakistan’s basmati rice exporters to strengthen their grip on the lucrative US market. 

The US, under the Trump administration, slapped a 50% tariff on several Indian goods — including basmati rice — as part of punitive measures over India’s trade and energy relations with Russia. While some Indian sectors later won exemptions, basmati rice was left exposed to the full tariff blow. 

Pakistan’s Price Advantage 

In contrast, Pakistani basmati rice faces a much lower 19% tariff, giving it a clear price edge for US buyers. Indian media reports suggest the tariff hike could slash India’s basmati exports to the US by 50–80%, pushing prices up to nearly $1,800 per metric tonne. Pakistani rice, meanwhile, remains more affordable at around $1,450 per metric tonne — a difference that importers can’t ignore. 

Impact: For American consumers, this means more Pakistani rice on supermarket shelves, while for Pakistani farmers and exporters, it signals a surge in orders and income. 

Read more: Pakistani rice maintains strong foothold in global markets despite India’s cheap rice strategy

Record Growth in Pakistan’s Exports 

Pakistan is already cashing in on this advantage. According to the Rice Exporters Association of Pakistan (REAP), the country exported 772,725 tonnes of basmati in FY24, earning $876.9 million — up sharply from 595,120 tonnes worth $650.4 million the year before. The average export price per tonne also climbed, showing not just higher sales but greater value. 

The US is now Pakistan’s single largest basmati destination, taking 24% of exports between November 2023 and October 2024. Italy (14%) and the UK (11%) follow closely, together making up nearly half of Pakistan’s global basmati trade. 

A Growing Global Appetite 

The US Department of Agriculture (USDA) reports that imported rice now makes up more than a quarter of America’s rice consumption — with over 60 percent of these imports being aromatic varieties from Asia. While the US does grow some aromatic rice domestically, connoisseurs know that its aroma and texture differ from Pakistan’s traditional basmati. 

Impact: As demand for fragrant Asian rice continues to increase, Pakistan has a rare window to cement itself as the go-to supplier for US households, restaurants, and gourmet markets — potentially reshaping the global basmati trade for years to come.