Indian seafood exports to face significant pressure due to US reciprocal tariffs, says FICCI study

ANI April 5, 2025 187 views

A new FICCI study highlights the potential economic impact of US reciprocal tariffs on India's seafood export sector. Currently valued at $2.58 billion, India's seafood exports could face significant market challenges, particularly in frozen shrimp categories. The tariffs might shift competitive advantages towards Latin American countries like Ecuador and Argentina. These trade policy changes could fundamentally reshape global seafood export dynamics, potentially reducing India's strong market position in the United States.

"Indian seafood exports will face significant pressure" - FICCI Study
New Delhi, April 5: Indian seafood exports will face significant pressure following the imposition of the US reciprocal tariffs, according to a study by the industry body FICCI.

Key Points

1

US remains India's largest seafood market with 34.5% export share

2

Frozen shrimp dominates 91.9% of export value

3

Reciprocal tariffs may shift market advantages to Latin American producers

India's exports of fish, meat, and processed seafood are valued at US USD 2.58 billion with six product categories--Frozen Shrimp, Frozen Fish, Fish Meal and Fish Feed, Frozen Squid, Surimi & Analogue Products, and Frozen Cuttlefish--accounting for 94 per cent of total export value.

US is India's largest seafood export market, holding a 34.5 per cent share of total export value. Frozen shrimp dominates, contributing 91.9 per cent of the export value (USD 2.34 billion) and 90.4 per cent of the volume (2.97 lakh tonnes).

"Indian seafood exports will face significant pressure following the imposition of the US reciprocal tariffs," the study said.

India competes with countries like Canada, Ecuador, Indonesia and Vietnam in these categories. Other Latin American countries also compete in the market.

The new tariff regime by the US is likely to tilt the dominance of Asian countries in this market towards Latin American countries primarily due to the relative tariff advantage that latter countries have gained after the reciprocal tariff announcements.

Ecuador and several smaller producers such as Argentina, Honduras, Mexico, Guatemala, Peru, and Saudi Arabia have a competitive advantage now and hence may gain market share.

The industry body highlighted that while tariffs on India are relatively lower than Indonesia and Vietnam, Indian exporters will, however find it challenging to maintain their strong foothold in the US market in these categories.

"Also, the domestic shrimp industry in the US is likely to become competitive and may enhance production and increase its share in domestic consumption," FICCI said in its report.

On April 2, US President Trump announced widespread imposition of tariffs on countries worldwide. In February, soon after taking charge for the second time, Trump outlined a new trade policy focused "on fairness and reciprocity" and said that the US would implement reciprocal tariffs, charging other countries the same tariffs they impose on American goods.

Trump said that tariffs would address "unfair trade practices, including non-monetary barriers, subsidies, and VAT systems", while encouraging foreign countries to either reduce or eliminate tariffs against the US.

As per the announcements, the import tariffs on other major countries are China (34 per cent), the European Union (20 per cent), Vietnam (46 per cent), Taiwan (32 per cent), Japan (24 per cent), India (26 per cent), the United Kingdom (10 per cent), Bangladesh (37 per cent), Pakistan (29 per cent), Sri Lanka (44 per cent), and Israel (17 per cent).

Reader Comments

R
Rahul K.
This is really concerning for our seafood industry. So many livelihoods depend on these exports. The government needs to negotiate better terms with the US or find alternative markets quickly. 🇮🇳
P
Priya M.
Maybe this is an opportunity to focus more on domestic consumption and processing? We have such a huge population that could benefit from more affordable seafood options at home.
A
Arjun S.
The numbers are staggering - 34.5% of our seafood exports go to the US! This tariff war is going to hurt. I wonder if we can pivot to European markets instead?
S
Sunita P.
While I understand the concern, perhaps our industry needs to focus more on quality and sustainability rather than just competing on price. This might be the push we need to upgrade our practices.
V
Vikram J.
The article mentions Ecuador and other Latin American countries gaining advantage - does anyone know what their tariff rates are compared to ours? Would be interesting to see the actual comparison.
N
Neha R.
This is so frustrating! Just when our seafood industry was doing well. I hope our trade representatives are working overtime to find solutions. Maybe we should consider retaliatory tariffs on US agricultural products?

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Seafood Exports Trump Tariffs FICCI US Trade Policy Indian Seafood Industry
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