U.S. President Trump's imposition of new tariffs poses a significant threat to global shrimp exports to the United States, with India's shrimp industry at the epicenter. The new 26% tariff could impact a seafood export market valued at up to US$7 billion (approximately HK$54.4 billion).
G. Pawan Kumar, president of the Seafood Exporters Association of India, stated that while Trump has delayed the implementation of the 26% tariff until July, the existing 10% rate is already causing anxiety among Indian exporters, whose profit margins range from just 3% to 4%. An unnamed Indian shrimp exporter warned that if the 26% tariff takes effect in July, it could spell disaster for the Indian shrimp industry. He mentioned ongoing negotiations with U.S. clients who are reluctant to absorb the 10% tariff, emphasizing that selling 130 containers of shrimp could result in no profit.
India's shrimp market heavily relies on major U.S. retailers such as Walmart. American buyers are seeking to renegotiate tariffs, while Indian exporters have already lowered their quotes by 10%. However, market demand is dwindling.
According to Reuters, the primary markets for Indian seafood exports include the U.S. and China, with India exporting approximately US$2.5 billion (about HK$19.38 billion) in seafood to the U.S. last year. Projections indicate that India's seafood export value could reach US$7.3 billion (about HK$56.61 billion) in 2024, with export volumes hitting a record 1.8 million tons.
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