Indian shrimp faces major challenges from the new U.S. tax policy

India’s shrimp export industry is facing a major shock after the United States imposed retaliatory tariffs of up to 50% on many Indian products on August 27. When combined with the existing anti-dumping duty (2.5%) and countervailing duty (5.8%), the total tax on Indian frozen shrimp could exceed 58%.

India’s shrimp export industry has been hit hard by the new U.S. tax policy.

Photo: Manoj Sharma, Mayank Aquaculture.

This development is particularly alarming because the U.S. is India’s largest shrimp market, having imported 311,948 tons worth 2.68 billion USD in the 2024–2025 fiscal year — accounting for nearly 50% of the country’s total shrimp export revenue.

According to forecasts by Crisil, India’s shrimp exports could decline by 15–18% in the current fiscal year, as U.S. importers are likely to shift to Vietnam and Ecuador, which enjoy better tariff advantages. Additionally, China may expand its market share if it maintains its current trade agreement with Washington.

Shrimp is a key export product, contributing 5.17 billion USD — nearly 70% of India’s total seafood export value last year. Around 500,000 shrimp farmers and millions of workers in the supply chain, including feed, aquaculture medicine, processing, and logistics, are being affected by falling prices, stagnant exports, and rising debt concerns, especially in key states such as Andhra Pradesh, Odisha, and Tamil Nadu.

To cope with the situation, the Indian government is being urged to implement an emergency relief package including concessional credit, export credit guarantees, interest subsidies, and temporary assistance for farmers. In the long term, India is advised to diversify its markets, upgrade aquaculture and processing infrastructure, invest in broodstock, feed, and disease control, and expand its domestic market.

Source: vasep.com.vn

• Indian shrimp pivot to the EU, increasing competitive pressure on Vietnam

• Indoor shrimp farming in Europe: Investment challenges and the race to find a viable model

• Shrimp production surged in the first month of the year, with exports benefiting from strong demand during the Lunar New Year holiday

• Quang Ninh Accelerates Digital Transformation in Shrimp Farming, Rising to Lead Northern Vietnam

• Lucky money is not just about cash — it’s Aqua Mina’s wish for a worry-free farming season for our valued customers

• Việt Nam's top 10 seafood exporters command nearly one-fifth of industry revenue

• Ca Mau Maintains Its Shrimp Brand in International Competition

• VIETSHRIMP ASIA 2026 & AQUACULTURE VIETNAM 2026 – A TURNING POINT FOR THE MODERN SHRIMP FARMING INDUSTRY

• Ecuador's shrimp industry educational program SustainED kicked off its 2026

• An Giang will start raising brackish water shrimp as early as the beginning of 2026

• Aqua Mina conducts the on-site installation of two aquaculture air blowers | Ceramic Ball Bearing – 15 kW – 25 kPa for a customer in Quang Ninh

• Towards Building Brand Value for the Shrimp Industry