India's shrimp exports hit by US tariffs, UK FTA offers slim relief

With the US imposing 25% tariffs on Indian goods, the shrimp industry faces a major setback, while the UK trade deal offers little immediate relief

India’s shrimp sector was pushed into uncertainty following US President Donald Trump’s decision to impose a 25 per cent tariff on all goods imported into the US from India.

 

Traders said India has been made to suffer due to its refusal to open up the dairy and agriculture sectors to cheap US imports. The US is the single-largest market for India’s seafood exports.

 

India exported almost $2.3 billion worth of shrimps to the US markets in FY24, which was more than 90 per cent of the total seafood exports to the US, trade data showed. Ecuador is India’s biggest competitor in the US shrimp market and tariffs for the country are far less.

 

 

“The only saving grace this time as compared to April is that India has entered into a trade agreement with the United Kingdom, which is also a significant shrimp market, but no one knows how much quantity UK can import,” Divya Kumar Gulati, chairman of Compound Livestock Feed Manufacturers Association (CLFMA), a body representing India’s livestock sector told Business Standard.

 

Trump had, in April, announced 26 per cent tariffs on imports from India, which had plunged the sector into turmoil. The decision was later put on hold.

 

In 2024-25, India’s marine exports to the UK were valued at $104 million (₹879 crore), with frozen shrimp alone contributing $80 million (77 per cent). 

 

However, India’s share in the UK’s $5.4 billion seafood import market is just 2.25 per cent.

 

“With CETA now in force, industry estimates project a 70 per cent surge in marine exports to the UK in the coming years,” a government statement said a few days back.

 

Gulati said notwithstanding the hedge from the UK markets, there would be significant impact on seafood exports due to the tariffs, which would be reflected in share prices of companies dealing in seafood tomorrow.

 

Meanwhile, Colin Shah, MD, Kama Jewelry said, “With US being one of the key export destinations, this will severely impact the sectors like gems and jewellery that are heavily dependent on exports and is one of the biggest contributors to the economy of the country,” Shah said.