US demand for Thai Hom Mali rice holds firm despite 19% tariff

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Would you pay more for the exact same bag of rice?

US consumers might. The current administration imposed a 19% tariff on Thai rice starting Aug. 1st.

But surprisingly, demand for premium Hom Mali rice, or fragrant jasmine rice, has stayed strong.

In the three months following President Trump’s initial tariff announcement, the US imported nearly 205,000 mt of Thai rice, nearly 13% increase from the same period a year ago, as US rice suppliers rushed to stock up before the tariffs went into effect. 

And even later in the summer as the tariff start date neared, the USDA forecast no changes to US rice imports.

Long-grain rice imports including jasmine rice from Southeast Asia remained forecast at a record 44 million mt for 2025-26.

So why hasn’t demand slowed?

Because there’s no true substitute for this variety of rice.

Not from Cambodia, and not even the local jasmine-style rice in the US.

Demand for jasmine rice remains strong in the US, especially among Asian American households.

Platts assessed Hom Mali up by $66/mt since Aug. 1, when the tariff took effect. 

So even though prices are indeed on the rise, we shouldn’t expect to see Thai rice imports moving down to compensate.