US tariffs on Indian shrimp threaten to sink exports
India's shrimp export revenue is expected to shrink by 12% in the 2025-26 financial year, thanks to steep new US tariffs effective August 27, 2025.
Since the US buys nearly half of India's shrimp by value, this move hits hard—giving rivals like Ecuador a chance to grab market share.
The numbers game
The US now charges a whopping 58.26% tariff on Indian shrimp, combining several duties.
That's pushed up costs and squeezed profits for Indian exporters, while Ecuador faces just an 18.8% tariff—making them more attractive to American buyers.
Indian shrimp exporters seek new markets
To cope, Indian shrimp companies are turning toward markets like China, the EU, Japan, and the UK.
But these places pay less and can't match the scale of the US market.
With more unsold stock piling up, businesses will need more working capital just to stay afloat.
Mid-sized exporters in a tight spot
Mid-sized exporters are feeling especially squeezed as cash gets tighter and profit margins shrink.
The industry is under pressure to get creative—with value-added products and better efficiency—if they want to stay competitive through these tough times.