Trump Tariffs Could Sink The $7 Billion Indian Shrimp Industry

India-West News Desk

NEW DELHI — The journey of India’s shrimp begins in the brackish ponds of Andhra Pradesh and ends in freezer aisles of American supermarkets like Walmart, Safeway, and Costco. From rural hatcheries to the seafood counters of New York, Houston, and Miami, it’s a complex 40-day supply chain that fuels one of the United States’ most consistent sources of affordable seafood.

India exported a record $7.3 billion worth of seafood last year, shipping 1.8 million metric tons globally. Shrimp made up the bulk of those exports, with the U.S. as its single largest market. Andhra Pradesh alone accounted for 92% of India’s $2.5 billion in shrimp exports to the United States, powered by nearly 300,000 small and mid-sized farmers.

But that dominance is now at risk. With high feed costs, land rental fees, and shipping expenses already squeezing profits, the tariff is proving to be the last straw for many.

The new tariff policy under President Donald Trump’s administration is threatening to upend India’s $7-billion seafood export sector. According to Reuters, Indian exporters are staring down a looming 26% tariff on shrimp imports to the U.S., expected to go into effect in July. Even the interim 10% tariff currently in place has already created panic in the industry.

“Thousands of containers packed with frozen shrimp are in limbo,” said one exporter, to Reuters due to the sensitivity of ongoing trade negotiations. “Buyers are backing out or trying to renegotiate contracts, and we’re seeing offer prices drop by up to 10%.”

“We can’t sustain these losses for long,” said another farmer in Ganapavaram, a shrimp-farming hub. “Some of us may have to shut down if this continues.”