Indian shrimp exporters turn to China amid Trump’s tariff hike: Report
Delhi: Indian shrimp exporters are pivoting towards China after the United States slapped a steep 50% tariff on imports from India, Mint reported.
The additional duty, imposed by US President Donald Trump as a penalty for India’s continued oil trade with Russia, has stripped Indian shrimp of its price edge in the American market.
The hike makes Indian shipments costlier than rivals from Ecuador, Vietnam, and Indonesia, forcing exporters to court new buyers in Asia.
China emerges as top buyer
China, buoyed by rising domestic demand, has quickly stepped in with forward contracts, transforming itself into a key growth market for Indian seafood.
“The tariff shock has turned out to be a blessing in disguise for Indian shrimp exporters,” said Shaji Baby John, chairman and managing director of Kings Infra Ventures Ltd.
“China, which was previously the second-largest importer of Indian shrimps after the US, has now emerged as one of the most promising markets. It is likely to become the top importer of Indian shrimps in the near future.”
From secondary market to processing hub
Once seen as a secondary buyer, China has gained significance due to its large seafood processing and re-export industry.
Chinese processors source raw shrimp from India and resell to duty-free markets, helping lift India’s export volumes.
Exporters diversify beyond US
Indian exporters are now widening their reach—stepping up shipments to China while exploring Europe, Japan, the UAE, and South Korea to reduce overreliance on US demand.
Some exporters are negotiating with American importers to split the tariff burden, while others are ramping up sales in domestic markets like Delhi-NCR, Bengaluru, and Hyderabad, John noted.
According to commerce ministry data, India’s marine exports in FY25 stood at $7.39 billion, of which $2.68 billion went to the US. In FY24, the American share was $2.50 billion.
Wider impact on Indian trade
The tariff shock extends beyond seafood. Think tank GTRI estimates that multiple sectors will take a hit, including textiles and clothing ($10.3 billion), gems and jewellery ($12 billion), chemicals ($2.34 billion), leather and footwear ($1.18 billion), machinery ($9 billion), and shrimp exports ($2.24 billion).
Kolkata-based exporter Yogesh Gupta of Megaa Moda warned last month that Indian shrimp is fast losing ground in the US.
“We are already facing huge competition from Ecuador as it has only 15 per cent tariff. Indian shrimp already attracts a 2.49 percent anti-dumping duty and a 5.77 percent countervailing duty. After this 25 percent, the duty will be 33.26 percent from August 7,” he said.
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