The trade winds between New Delhi and Washington have turned turbulent this week. Following India’s decision to impose a hefty 30% tariff on imported yellow peas, top American lawmakers are calling foul. The move, intended to boost India’s agricultural independence, has triggered a strong response from the United States, with key Senators now knocking on President Donald Trump’s door to demand immediate intervention in ongoing trade talks.
The 30% Wall: What India Imposed and Why
The controversy stems from a policy announced by the Indian government on October 30, 2025, which came into full effect on November 1, 2025. To support domestic farmers, India slapped a 30% duty on yellow peas. This tariff structure is two-fold: a 10% basic customs duty combined with a 20% Agriculture Infrastructure and Development cess.
While the United States feels the pinch, Indian officials have clarified that this measure applies uniformly to all exporting countries, including major players like Canada. The primary goal is domestic, not diplomatic. The decision aligns with the ambitious Mission for Aatmanirbharta in Pulses (budgeted at Rs 11,440 crore), aiming to shield local producers from cheap imports and stabilize prices within India. By creating a price floor for imports, the government hopes to encourage Indian farmers to ramp up production for the 2025-26 to 2030-31 cycles.
Washington Pushes Back: Senators Write to Trump
The reaction from American agriculture hubs has been swift and sharp. On January 16, 2026, Republican Senators Steve Daines of Montana and Kevin Cramer of North Dakota penned a strongly worded letter to President Donald Trump. Representing two of the top pulse-producing states in the US, the Senators labeled the tariff “unfair” and detrimental to American interests.
In their correspondence, they highlighted India’s dominant position as the world’s largest consumer of pulses, accounting for 27% of global demand. The Senators argued that this new duty creates a “significant competitive disadvantage” for high-quality US produce, specifically yellow peas, lentils, chickpeas, and dried beans. They are urging the President to prioritize the removal of these tariffs in any upcoming discussions, fearing that without access to the Indian market, US farmers will face a massive surplus and financial strain.
A New Hurdle in Stalled Trade Negotiations
This agricultural dispute is arriving at a delicate time for Indo-US relations. The Senators have suggested linking the pulse tariffs to broader trade rebalancing efforts. This comes amidst an already tense economic backdrop, where the Trump administration has floated the idea of 50% tariffs on Indian imports, partly as a penalty for India’s continued trade in Russian oil.
However, agriculture remains a sensitive topic for New Delhi. India views the farming sector as a “red line” in negotiations, consistently resisting tariff-free access to protect the livelihoods of millions of small-scale farmers. While US officials have recently expressed frustration over what they claim is a collapsed trade deal, Indian officials maintain that their policies are flexible and driven by domestic production cycles, not geopolitical targeting. As both nations dig in their heels, this 30% tariff has evolved from a simple import tax into a significant diplomatic irritant.
What comes next? With the ball now in President Trump’s court, market watchers are waiting to see if the US will use its leverage to force a rollback, or if India will stand firm on its path to self-reliance.
Last Updated: 18 January 2026
