Indian seafood exporters see severe impact from US tariffs

The Seafood Exporters Association of India (SEAI) President G Pawan Kumar on Sunday said the reciprocal tariffs announced by US President Donald Trump will have a severe adverse impact on Indian seafood exports to the US market, whose value stands at $2.5 billion in 2023-24.

Out of the total seafood exports to the US, shrimps accounted for the lion’s share of 92%, and India is the largest supplier of shrimps to the US, Kumar said.

"This tariff will hurt all stakeholders in the value chain and cause all-around distress," Kumar told PTI.

He added that India will falter in export performance compared to the South American nation Ecuador, on which the US has levied only a 10% tariff. Vietnam, with a reciprocal tariff rate of 46%, and Indonesia, with 32%, will concede a massive advantage to the South American country, he said.

According to Vizag-based Kumar, Ecuador is likely to replace India as the largest shrimp supplier to the US market. "It will be difficult for Indian seafood exporters to absorb this margin of 16% and compete with produce from Ecuador. The prevailing margins in this sector are 4-5% only," he said.

The higher tariffs come into effect from April 9 as 2,000 containers of seafood are currently in transit to the US market, he said.

Kumar underscored that the tariff impact that will have to be borne by exporters in India is estimated to be around Rs 600 crore, while an equal number of containers in cold storage are waiting for shipment.

As export orders are on delivery at doorstep basis, the impact of tariff will have to be borne by exporters for goods in transit, said Kumar, adding that this will pose a huge additional burden on shippers.