The United States’ decision to impose a 25 percent tariff on imports from India could deliver a severe blow to the country’s seafood export industry, a fishers' union has warned.
US President Donald Trump’s latest tariff directive specifically targets Indian seafood products—particularly shrimp, which accounted for 90 percent of the $2.3 million worth of marine exports India shipped to the US last year. Most of this was vannamei shrimp.
“In April, when Trump first imposed retaliatory tariffs on all countries, India was affected too, but a three-month exemption was granted,” said Charles George, president of the Kerala Matsya Thozhilali Aikyavedi (TUCI). “Compared to Indonesia, Thailand, Vietnam and China, India enjoyed a relatively favourable position—but that advantage has now been lost.”
From now on, Indian seafood exporters will face a combined tariff burden of 34.21 percent: a 2.4 percent anti-dumping duty, a 5.7 percent countervailing duty, and a 26 percent import tariff.
In comparison, Vietnam was previously subjected to a 76.6 percent cumulative duty (including a 25.76 percent anti-dumping duty and a 46 percent tariff), while Indonesia paid 35.26 percent. Countries like Sri Lanka and Bangladesh were completely pushed out of the US market.
Meanwhile, Guatemala—geographically closer to the US—now faces only a 10 percent tax. Several Latin American nations enjoy similarly lenient rates. Even Southeast Asian competitors such as Indonesia and Vietnam now face lower total levies of 19 percent and 20 percent, respectively, under the revised tariff structure.
“This move could effectively dismantle India’s seafood export industry, which is heavily dependent on the US market,” George said.
He noted that irrational and unscientific marine conservation rules have already hampered India's shrimp exports in recent years. “Over the past five years, the US has banned Indian wild-caught shrimp under the pretext of turtle conservation. As a result, some processing units in Arur in Kerala's Alappuzha district have shut down,” he said.
Starting next year, the US is expected to expand its import restrictions to all marine products, citing the protection of whales and sea pigs. However, India’s aquaculture-based shrimp production had so far managed to maintain its strong presence in the American market.
Now, with the new tax regime coming into force, it remains unclear how the ₹1,500 crore worth of Indian seafood currently en route to the US will be affected.
George warned that shifting exports to China or the UK will not be a simple solution. “The Indian government must act urgently to demand a rollback of the 15 percent additional duties imposed by the US. Immediate intervention is needed to protect this labour-intensive export sector,” he urged.