Marine exporters fear Rs 600 crore loss as US tariffs bite

Indian marine product exporters are likely to bear losses of ₹600 crore on shipments in transit to the US as they face cancellation of orders and revision of prices due to the new US tariffs. The industry has sought government intervention to weather the storm.

India, the largest shrimp exporter to the US, is at a disadvantage compared to the second largest exporter Ecuador, which has been slapped with a lower tariff, multiple industry executives said.

Mangoes and spices exporters are also worried about the new US tariffs, while basmati exporters are somewhat relieved as the tariff on their closest competitor Pakistan is higher.


The US has imposed a 27% tariff on India, while it is 10% on Ecuador and 30% on Pakistan. All goods that reach the US from April 9 onwards will face the new tariffs.

Pawan Kumar G, president of Seafood Exporters Association of India (SEAI), pointed out that other key shrimp exporters like Vietnam and Indonesia face tariffs of 46% and 32%, respectively.

"This gives a huge advantage to Ecuador and they appear likely to replace India as the largest supplier of shrimps to the US market," Kumar said. "It will be difficult for Indian seafood exporters to absorb the differential tariff of 17% and compete with produce from Ecuador. The prevailing margins in this sector are 4-5% only."

Kumar said close to 2,000 containers of seafood are presently in transit from India to the US. "The tariff impact that will have to be borne by exporters in India on this score comes to about Rs 600 crore," he said.

"There are an equal number of containers in cold stores waiting for shipment," he added.

According to SEAI, India exported seafood valued at $2.55 billion to the US in 2023-24, out of which shrimps constituted about 92%.

"In the short term, we are facing cancellations of orders... Fishermen will also bear the brunt of this tariff," said Jagdish Fofandi, CEO of Deepmala Group, an exporter of sea fish. Pomfret, kingfish, squid, octopus, cuttlefish, etc are also being impacted, he said.