Will Vietnamese rice benefit if the US imposes high tariffs on Asian rice?

Thailand's rice exports to the US increased by about 56,000 tons in 2024, reaching over 786,000 tons, while Vietnam's rice exports to the US were negligible and accounted for only 2.2% of the market share. Two US congressmen have urged President Trump to consider imposing tariffs of up to 100% on all rice imports from Asia to protect the domestic rice industry. Thai rice, particularly fragrant Hom Mali rice, could face higher tariffs due to Trump's protectionist policies, which could shift US consumer preferences towards cheaper options like Vietnamese or Cambodian rice. However, despite potential tariffs, US consumers are expected to continue demanding Asian rice, especially fragrant rice, and may opt for more affordable options if Thai rice becomes more expensive.

Source: thesaigontimes.vn Thailand exported more than 786,000 tons of rice to the US last year, up from about 730,000 tons in 2023. Meanwhile, Vietnam's rice exports to the US are negligible. According to data from usimportdata.com, in 2023, Vietnam was the fifth largest rice exporter to the US, with a turnover of $30.84 million, accounting for only 2.2% of the market share, behind Thailand, India, Pakistan and China. Last month, two US congressmen, Clay Higgins and Julia Letlow, sent a letter to President Donald Trump to express their concerns about the increasing rice imports, putting pressure on the domestic rice industry. These people are calling on the government to impose tariffs of up to 100% on all rice imports from India, Thailand, Vietnam, China and Pakistan to level the playing field for US farmers and rice processors. Earlier this month, Professor Somporn Isvilanonda of the Thailand Knowledge Institute warned that Thai rice is at risk of facing higher US tariffs ...