Trump's 25% tariff puts India's ₹60,000 crore seafood export industry under pressure

India's Rs 60,000 crore seafood export industry is likely to face a dent in export orders from the US with industry executives fearing they would face huge pressure from US importers to absorb the increase in tariffs which could impact farm gate prices, industry executives said.

Indian exporters are presently paying 10% tariffs and additional anti-dumping duty of 4.5% and countervailing duty of 5.8%. With the US announcing the tariffs of 25% and a penalty from August 1, the exporters will face at least 15% additional duty over the existing tariff structure.

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"The seafood industry will be in dire straits affecting 20 million people. The industry will come to a standstill as we cannot absorb the 15% increase in tariffs," said Pawan Kumar G, president, Seafood Exporters Association.

Ecuador, India's closest competitor in sea food exports and is geographically closest to the US, has to pay only 10% tariff to the US while Indonesia pays 19% duty and Vietnam 20%.

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Kumar said there is also uncertainty about how much the penalty would be. “We don't know if the new tariff will become applicable to the consignments worth Rs 1500 crores currently sailing on the waters,” he said.

Frozen shrimp exports account for more than Rs 40,000 crores of India's total seafood exports and the US accounts for 40% of India's total shrimp exports.