Duty impact to be passed on to US buyers, says marine industry

The Indian seafood industry, which is the largest exporter of shrimp and other seafood to the US, has decided that it will not be able to absorb the 50% increase in tariffs.

Although the export shipments have stopped since last fortnight, US buying is expected to return soon as currently, both the exporters and importers are awaiting corrections in the market.

Meanwhile, US consumers will have to pay higher for their favourite seafood from India, as no country can immediately replace India's value-added products, said exporters.


According to government data, India exported seafood worth $7.45 billion in 2024-25 fiscal of which the US accounted for $2.71 billion. Frozen shrimp accounts for nearly 70% share of India's total seafood exports.

"The shipments of old orders have been suspended; not cancelled, for the time being. There is a general consensus among seafood exporters that we will pass on the entire tariff to the US buyers," said a veteran seafood exporter, who declined to be identified.

"The leading US retailers that we work with have decided to stock their shelves by passing on the increase in tariffs to their consumers and let the consumers decide if they can absorb the increase in prices," said a leading exporter of value-added seafood to the US from south India, who requested not to be identified. He added, "If we do not get repeat orders, then we will work on who cuts the margins by how much."

The impact of the 50% tariff will be different on different companies depending upon their product portfolio and the profile of their buyers.