US Tariffs Put $2 Billion Indian Shrimp Exports at Risk, Exporters Appeal for Support

India’s shrimp export industry is facing significant challenges following a recent increase in US tariffs, which threatens around $2 billion worth of exports. The Seafood Export Association of India (SEAI) has reached out to the ministries of commerce and finance, requesting urgent financial assistance to mitigate the impact of these tariff hikes introduced by former President Donald Trump, as per PTI report.

US Tariff Hike Disrupts $2 Billion Indian Shrimp Exports

As per PTI report, according to SEAI Secretary General K N Raghavan, the US has raised reciprocal tariffs on Indian shrimp from 25% to as high as 50%, severely disrupting exports. In 2024, India exported shrimp worth $2.8 billion to the US market, with shipments totalling $500 million so far this year. 

The new tariffs put Indian seafood at a disadvantage compared to competitors from China, Vietnam, and Thailand, whose exports face lower tariffs ranging from 20-30%,.

Need for Market Diversification and Government Support

The report citing demands by the Seafood Export Association of India (SEAI) added that the Indian exporters are unable to redirect existing shipments to other markets without incurring additional penalties of up to 40% for contract violations.

To cope with these challenges, the association has proposed a 30% increase in working capital through soft loans, with government backed interest subsidies and a 240-day moratorium for operational costs related to packaging and shipping.

Seafood Export Association of India (SEAI) highlighted the importance of exploring new markets to reduce dependency on the US.

Tariff Hike Threatens India’s Global Seafood Competitiveness

This tariff escalation poses a threat to one of India’s largest agricultural export sectors, which employs millions in coastal states and plays a key role in the country’s foreign exchange earnings.

The Seafood Export Association urges swift government intervention to protect the livelihoods of those dependent on this industry and to sustain India’s competitive position in the global seafood market.

Read More: Trump Doubles US Tariffs on India to 50%; 21-Day Window for Talks Opens.

Conclusion

The recent US tariff increase presents a significant challenge for India’s shrimp export sector, impacting both businesses and livelihoods. Timely government support and strategic market diversification will be crucial for the industry to navigate these disruptions and maintain its position in the global seafood market.

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