April 2025 – India’s shrimp export sector is regaining momentum after a temporary suspension of the proposed 26% countervailing duty by the United States. With relief from the abrupt tariff hike, Indian seafood exporters are now preparing to ship 35,000–40,000 tonnes of shrimp to the US, marking a crucial recovery step in the international shrimp trade.
US Tariff Suspension Brings Relief to Indian Seafood Exporters
According to K. N. Raghavan, General Secretary of the Indian Marine Products Export Development Authority (MPEDA), the suspension of the tariff has placed Indian shrimp exporters on equal footing with other international suppliers, excluding China. The revised trade terms now include a basic customs duty of 10% on most countries, with China facing a significantly higher duty of 145%.
Raghavan stated, “This decision offers much-needed relief to Indian exporters. We are now resuming pending shipments and ramping up logistics to meet US demand.”
Approximately 2,000 containers of shrimp, which had been on hold due to tariff uncertainty, are now being prepared for export. Industry insiders confirm that these shipments will proceed under the temporarily reduced duty, avoiding additional financial strain on pre-contracted orders.
Current US Duties on Indian Shrimp Exports
Despite the temporary relief, Indian shrimp still faces an effective 17.7% import duty in the US, which includes:
- 5.7% retaliation fee
- 1.8% anti-dumping duty
- 10% standard customs duty (new)
Exporters commonly absorb these fees under the supply fee-paying system, and the suspension helps avoid higher costs that would have come with the proposed 26% counter-duty.
Export Stability and Continued US Demand
Notably, the US remains India’s largest shrimp export market by both volume and value. According to MPEDA, India exported $2.7 billion worth of shrimp to the US in the 2023–24 fiscal year, and there has been no reduction in US orders, even during the tariff uncertainty.
An industry representative emphasized, “The 90-day duty suspension allows us to fulfill standing orders without additional cost burdens, preserving crucial trade flows.”
Call for Long-Term Trade Stability
Raghavan has called on the Indian government to ensure “equal opportunity” for Indian seafood exports in upcoming trade negotiations with the US. The goal is to maintain tariff parity and protect India’s market share in the competitive American seafood sector.
Ocean Treasure’s Take: Implications for the Global Shrimp Trade
At Ocean Treasure, we see India’s recovery in shrimp exports as a positive signal for global seafood supply chains. The stability in US-bound shipments from India helps maintain price consistency and market confidence. However, continued vigilance is necessary as tariff dynamics could shift again after the temporary relief period ends.
As a key supplier in the frozen shrimp and seafood trade, we continue to monitor developments across major producing nations, including India, Vietnam, China, and Ecuador, to better serve our partners across the US, EU, and Asia-Pacific markets.
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