What's the Tariff on Rice?
Rice from Thailand, India, Vietnam.
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 rates2018
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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