Impact of Higher US Tariff on India's Shrimp Exports

In what has been described as a 'very bad' and 'shocking' development, agri-economist Ashok Gulati has reacted strongly to US President Donald Trump's decision to impose a hefty 25% tariff plus penalties on Indian goods, which will take effect from August 1. This policy change, significantly harsher than the anticipated 10-15% tariff, has left the Indian seafood export industry in a state of alarm.

Indian shrimp exports, a major component of the country's seafood sector, are poised to feel the full force of these tariffs. With the US being a primary market, the impact on shrimp exports—valued at approximately USD 4.88 billion during 2024-25—is expected to be severe. The geographical proximity of Ecuador, with its lower tariffs, amplifies the competitive disadvantage for Indian exports.

In addition to seafood, the higher tariffs will likely affect Indian textiles. Gulati warns that the potential benefits from the India-UK free trade agreement might be overshadowed by the US trade barriers. Seafood trade stakeholders brace for challenging times ahead, as shrimp exports account for 66% of India's total seafood exports, making this tariff hike a critical concern for the industry.

(With inputs from agencies.)