Shrimp exporters seek government help as Trump's tariff threatens trade
What's the story
The Seafood Export Association of India (SEAI) has sought emergency financial support from the Ministry of Commerce and the Ministry of Finance. The request comes in light of President Donald Trump's recent hike in tariffs on shrimp exports, which could severely disrupt trade worth nearly $2 billion. The association has asked for a 30% increase in working capital through soft loans with interest subvention and a 240-day moratorium for pre- and post-packaging operations.
Information
US tariffs on shrimp exports
SEAI Secretary General K. N. Raghavan told PTI that Trump's latest tariff hike, raising reciprocal tariffs from 25% to as much as 50%, makes Indian seafood significantly less competitive than that of China, Vietnam, and Thailand, which face U.S. tariffs of only about 20-30%
Market concerns
Competitors may lower prices to capture US market
Raghavan warned that Asian competitors could easily capture US market share by lowering their prices. He added that Indian exporters can't reroute existing shipments, as it would attract an additional 40% penalty for contract violations. "The only way is to explore five new markets, but it would take time," he said, referring to the free trade deal with the UK, which will take time for implementation.
Sector impact
Threat to India's agricultural export sector
The tariff escalation poses a major threat to one of India's biggest agricultural export sectors. This industry employs millions of people across coastal states and contributes significantly to the country's foreign exchange earnings. In 2024, India exported $2.8 billion worth of shrimps to the US and has already shipped $500 million worth this year alone.