U.S. Tariffs Shake India’s Seafood Industry: Exporters Face Rising Costs and Uncertain Future

 

U.S. Tariffs Shake India’s Seafood Industry: Exporters Face Rising Costs and Uncertain Future

The Indian seafood industry, a global leader in shrimp and fish exports, is reeling from the latest U.S. tariff changes that have disrupted trade flows and profitability. With the United States being one of India’s largest seafood markets, the newly imposed tariffs have sparked widespread concern among exporters, processors, and coastal communities.

The U.S. government recently increased import duties on several seafood categories, citing the need to protect domestic aquaculture producers. However, for Indian exporters, this policy shift comes as a major blow. Shrimp, which forms nearly 40% of India’s seafood exports, is among the hardest hit products. Many small and medium exporters are now struggling to maintain competitive prices, as higher tariffs erode their margins.

Industry experts warn that the new trade barriers could reduce India’s seafood export volumes in the coming months. Exporters may be forced to divert shipments to alternative markets such as Europe, Japan, and the Middle East — though these regions often have lower demand and stricter quality standards.

“This tariff move is a major setback,” said an exporter from Andhra Pradesh, India’s top shrimp-producing state. “Our costs are already rising due to feed prices and freight charges. Now, with the new tariffs, it’s becoming difficult to sustain profitability.”

The turmoil also threatens the livelihoods of thousands of coastal fishers and processing workers. Many depend heavily on export-linked demand, and any disruption in overseas sales directly impacts their income.

Despite the challenges, India’s seafood sector is showing resilience. Industry associations are urging the government to negotiate relief measures or explore trade agreements that could ease tariff pressure. Meanwhile, exporters are exploring value-added processing, branding, and digital marketing to maintain their presence in global markets.

The coming months will be critical in determining how the Indian seafood industry adapts to these shifting trade tides. While tariffs may temporarily slow growth, experts believe innovation, market diversification, and government support can help the sector regain momentum.