Indian seafood exports to feel the heat on US reciprocal tariffs

The reciprocal tariff announced by the US President Donald Trump will have an impact on Indian seafood exports to the US markets, according to the Seafood Exporters Association of India. Indian exports will have tariffs of 26 per cent, while other countries such as Ecuador will have 10 per cent, Vietnam 46 per cent and Indonesia 32 per cent. This gives a huge advantage to Ecuador and the sector foresees Ecuador replacing India as the largest supplier of shrimps to US, K.

N. Raghavan, general secretary of SEAI, told businessline . The emerging situation might also lead to lesser supply from Ecuador to China.



Currently close to 60 per cent of Ecuador production goes to China. However, this presents an opportunity for seafood exporters from India. Moreover, the situation may also lead to an increase in shrimp prices globally, he said.

Since the higher tariffs come into effect from April 9, all goods that reach the USA from this date will face this. Since export orders are on delivery at doorstep basis, the impact of tariff will have to be borne by exporters for goods in transit. This will pose a huge additional burden on shippers, Raghavan said.

The US is the largest export market for Indian shrimps with a share of 34 per cent out of the total export turnover of seafood. India’s seafood exports to the US in 2023-24 were $2,550 million. Of late, the sector has been facing many difficulties with regard to market access to the US as there has already been a 5.

77 per cent countervailing duty imposed by the US department of Commerce on all shrimp exports. The US also initiated an investigation for levy of antidumping duty as well, he added. The association had also sought to waive the 30 per cent customs duty imposed on shrimp imports from the US in order to protect the Indian seafood industry from levying reciprocal tariff.

Comments.