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Fearing Trump tariff, Indian seafood exporters seek duty cut on shrimp

Removing the 30 percent customs duty on US shrimp wouldn’t have much impact on local producers.

Dhanam News Desk

Agaisnt the backdrop of US President Donald Trump's threat of imposing `reciprocal tariffs' on other countries, including India, seafood exporters in India have urged the Union government to reconsider the 30% customs duty on shrimp imports from the US.

According to a recent The Hindu BusinessLine report, seafood exporters voiced their concern about the possibility of a retaliatory tariff from the US, which could seriously affect India’s seafood exports.

Reciprocal tariff from April 2

On Thrusday, Trump reiterated his plan to impose the reciprocal tariffs. In a post on his Truth Social platform, Trump set a timeframe starting April 2 for executing the reciprocal tariffs.

Indian seafood exporters are worried that a reciprocal tariff by Trump will drastically impact US demand for Indian seafood.

The exporters' request came up during a meeting with Commerce Minister Piyush Goyal in Kochi, where he was attending the Invest Kerala Global Summit 2025 last week.

The US holds a significant place as the largest export market for Indian shrimps, accounting for 34% of the country’s total seafood export turnover. However, the value of shrimp imported into India, including from the US, is relatively low.

US similar tariff imposition

According to industry insiders, removing the 30 percent customs duty on US shrimp wouldn’t have much impact on local producers. But their real worry is that maintaining the duty could prompt the US to impose similar tariffs on Indian shrimp exports. Since the US is such a vital market for Indian seafood, any retaliatory measures could harm India’s standing in the global market and result in substantial losses.

Countervailing duty

Adding to the uncertainty, there are ongoing discussions in the US regarding a 5.77 percent Countervailing Duty on all shrimp imports, with the US Department of Commerce also investigating potential anti-dumping duties.

Data from the Department of Commerce shows that while shrimp imports from the US totalled $3.16 million in 2024-25 (up to November), India’s exports to the US during the same period were a whopping $1319.68 million. For comparison, last fiscal year saw imports of $2.91 million and exports of $1809 million.

Beyond tariffs, seafood exporters are also facing challenges closer to home. State biodiversity boards have begun taking action against seafood units, considering seafood as a biological resource and requiring payment of access and benefit-sharing charges. The sector is now hoping the Minister will back their request to exclude seafood from the purview of the Biological Diversity Act of 2002.

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