US Tariffs Threaten India's Shrimp Export Market
The US is increasing tariffs on Indian shrimp exports, potentially reducing export volumes by 7-9% this financial year. Combined with existing financial penalties, India's exporters face significant challenges in the US market. In comparison, Ecuador enjoys lower tariffs and duties, highlighting competitive pressures.
- Country:
- India
The US's proposed tariff hike on Indian shrimp exports could slash export volumes by 7-9% for the fiscal year, Crisil Ratings indicated on Friday. This comes as a major challenge for Indian exporters, where the US accounts for nearly half (48%) of their market share, noted Rahul Guha, Crisil Ratings Senior Director.
Announced by US President Donald Trump, the tariffs include a 25% hike and additional penalties tied to India's trade with Russia, set to commence on August 7. Coupled with a 5.77% countervailing duty imposed last year and existing anti-dumping duties, Indian shrimp exporters could face some of the highest taxation in the American market.
In contrast, Ecuador, the world's leading shrimp exporter, enjoys significantly lower tariffs at just 10% and countervailing duties of 3-4%. Guha highlights that Indian exporters' operating margins are expected to decline by 50-100 basis points due to increased costs and Ecuador's competitive pricing. Consequently, the financial stability of Indian shrimp exporters is poised for further strain.
(With inputs from agencies.)
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