Exporters in India, the biggest supplier of shrimp to the US, say that President Donald Trump’s tariffs could endanger a large number of containers of the frozen delicacy and disrupt global shipments.
Ecuadorian exporters state that their country will benefit due to lower tariffs on shrimp, as it is their most important export after oil. This is despite Ecuador being thousands of kilometers closer to the United States than India.
Trump’s July plan threatens India’s $7 billion shrimp export market to the US, as it proposes a 26% tariff.
This puts pressure on India’s thriving seafood export industry that heavily depends on US supermarket chains, including Walmart and Kroger, as buyers seek to renegotiate prices, Reuters reported on Monday.
According to the report, tariffs could endanger 2,000 containers of shrimps from Indian ports.
Offer prices reduced
As uncertainty causes demand to decrease, Indian exporters have reduced offer prices by 10% and farmers are experiencing a drying up of demand due to the tariffs.
S.V.L. Pathi Raju, a 60 year old shrimp farmer from India’s coastal Andhra Pradesh, was quoted in the report:
We are suffering huge losses.
Raju and other families in the remote village of Ganapavaram are struggling with decreasing sales to exporters. “We are uncertain who can find a solution to our pricing problems,” Raju added.
Additionally, the cost of shrimp feed and rental fees for land with saline ponds are significant burdens for many.
Uppalapati Nagaraju, another 60-year-old farmer, expressed uncertainty about sustaining prices.
He admitted being completely unaware of the concept of tariffs and stated that had he known about them, he would not have started his cultivation.
He regrets starting shrimp cultivation only 15 days before the tariff news, due to unpredictable demand from exporters.
Exporters remain cautious
The exporters are nervous because of the current 10% tariff rate, even though Trump has delayed the 26% rate until July.
The US and China have emerged as key players in India’s thriving seafood export industry, contributing significantly to the record-breaking figures achieved last year.
In 2024, India’s seafood exports reached an all-time high of $7.3 billion, with a total volume of 1.8 million metric tons.
This remarkable achievement underscores the growing demand for Indian seafood in major international markets, particularly the US and China.
The burgeoning trade relationship between India and these two economic powerhouses had played a pivotal role in propelling the Indian seafood sector to new heights.
Andhra Pradesh’s 300,000 shrimp farmers were the primary contributors to the $2.5 billion in seafood exports to the US last year, with shrimp being the main export and the state accounting for 92% of India’s total seafood exports, according to the Reuters report.
Other options
A state government panel, tasked with evaluating the impact of tariffs and exploring ways to increase exports to countries like China, now includes members from the industry.
Ecuadorian producers shipped $1.55 billion worth of shrimp in 2024, but they are less optimistic about the future.
Indian exporters fear that Ecuador will have a competitive edge due to the planned 10% tariff rate for the South American nation.
This is especially concerning since Ecuador is much closer to the US, which is its second-biggest market for shrimp.
According to the report, India will be forced to find other markets, like China and the European Union, where Ecuador also sells its products. This will put more pressure on Ecuador’s market share in those regions.
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