US Buyers Renegotiate with India's Shrimp Farmers Amid Trump's Tariffs

India's shrimp industry is facing significant challenges following the U.S. government's decision to impose a 26% tariff on frozen shrimp imports. This tariff increase, set to take effect in July, threatens to disrupt a $7 billion seafood export sector that heavily relies on U.S. buyers like Walmart and Kroger. The move endangers nearly 2,000 containers of shrimp and impacts the livelihoods of around 300,000 farmers, predominantly in Andhra Pradesh .​

 Impact on Indian Shrimp Exports

The U.S. Department of Commerce has initiated a countervailing duty (CVD) investigation into Indian shrimp imports, citing concerns over alleged subsidies provided to the Indian aquaculture sector. The CVD, imposed in 2024, ranges from 7.02% to 11.03% on imports from various Indian companies. This substantial tariff increase has raised concerns within the Indian seafood industry about the future viability of exports to the U.S. market, which accounts for a significant portion of India’s seafood exports.​

 Industry Response and Mitigation Strategies

The Indian seafood industry is actively seeking ways to mitigate the impact of the CVD:​

 Diversification: Exploring new markets beyond the U.S. to reduce reliance on a single market.​

 Value Addition: Focusing on producing higher-value shrimp products, such as cooked, peeled, and deveined shrimp, to attract premium prices.​

• Improving Efficiency: Implementing cost-cutting measures, such as optimizing production processes, improving feed efficiency, and reducing waste.​
•  Collaboration: Strengthening partnerships between farmers, exporters, and the government to address the challenges collectively.​

The U.S. International Trade Commission (USITC) maintains rigorous monitoring of shrimp import volumes, pricing strategies, potential market injury to domestic producers, and compliance with international trade standards .​

Conclusion

The U.S. countervailing duty on Indian shrimp exports is a significant challenge, but it also presents an opportunity for the Indian seafood industry to adapt, innovate, and become more resilient. By focusing on sustainable practices, diversification, and technology adoption, India can emerge stronger from this trade dispute and solidify its position as a major player in the global seafood market.