Agriculture

What's the Tariff on Rice?

Rice from Thailand, India, Vietnam.

💡
The 10% tariff on Rice is paid by American importers, not foreign manufacturers. Your 20 lb bag rice now costs $20.89 instead of $18.99 — that's $1.9 more, or 10% of the sticker price going directly to tariff taxes.

Current Tariff Rate

10%

Pre-2025 Rate

0%

Rate Increase

+10pp

Price Impact

+10%

+$1.9

Real-World Price Impact

Before Tariffs

$18.99

20 lb bag rice

After Tariffs

$20.89

20 lb bag rice

That's $1.9 more per unit — a 10% price increase paid by the American buyer.

Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.

The Story Behind This Tariff

Rice tariffs reveal a stark divide between American rice production and consumption patterns. The US grows substantial rice — primarily long-grain in Arkansas, Louisiana, and Texas — but American consumers increasingly prefer jasmine and basmati varieties that domestic farms don't produce. Thailand's Hom Mali jasmine rice and India's basmati have become pantry staples for millions of Asian-American and South Asian-American households, making this tariff culturally discriminatory in practice. The 10% Section 122 tariff is modest but symbolically significant: it taxes dietary staples of immigrant communities while leaving domestically-produced long-grain rice unaffected. California's medium-grain Calrose rice partially substitutes for some imports, but the aromatic qualities of Thai jasmine and Indian basmati have no domestic equivalent. The tariff also disrupts restaurant supply chains for thousands of Thai, Indian, and Chinese restaurants.

📦 Supply Chain

Primary Origin

Thailand

Made in USA

70%

Import Volume

.1B

Alternatives

Domestic Calrose (partial substitute)

📅 Tariff Timeline

1995

WTO Agreement on Agriculture sets rice tariff bindings

Bound rates

2018

Section 301 excludes rice from China tariffs

0%

2025-Feb

Section 122 emergency tariff on rice imports

10%

2025-Mar

Asian-American community groups protest disparate impact

10%

👥 Consumer Impact

Households Affected

45M

Annual Cost Per Household

8

💡 Did You Know?

  • The US is actually a major rice exporter, shipping Southern long-grain to Mexico and Central America while importing Asian aromatic varieties
  • Thai jasmine rice requires specific monsoon climate conditions impossible to replicate in US growing regions
  • Arkansas produces more rice than any US state — yet imports of specialty rice keep growing 8% annually

Tariff Details

HTS Code
1006.30
Current Rate
10%
Pre-2025 Rate
0%
Tariff Type
Section 122

Legal Authority

Section 122 (Balance of Payments)

Effective: April 2025

Baseline 10% tariff on imports to address balance of payments

The tariff on Rice is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.

Who Actually Pays This Tariff?

Despite claims that tariffs are paid by foreign countries, the 10% tariff on Rice is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.

  • ✓ The foreign seller receives the same price as before
  • ✓ The US importer pays 10% of the customs value to CBP
  • ✓ The retailer marks up the higher landed cost
  • ✓ You pay more at the register: $18.99 → $20.89

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