Market participants have indicated that the recent implementation of additional duties is likely to have a severe impact on India’s shrimp exports to the United States. The increased tariffs are expected to raise the effective tariff barrier on Indian shrimp exports to approximately 45 per cent, making it significantly more challenging for Indian exporters to compete in the US market.
This development is a concern for the Indian seafood industry, as the United States is a major export market for Indian shrimp. The higher tariffs may lead to a decline in demand for Indian shrimp in the US, potentially affecting the livelihoods of those involved in the shrimp farming and export sectors.
The bulk of India’s seafood exports to the US is in the form of “Vannamei Shrimp”, and some estimates said that in FY24, almost 41 per cent of India’s shrimp exports went to America, which was by far one of its largest markets.