Indian Shrimp Exporters Pivot to China Amid US Tariff Shock
US tariff shock drives Indian shrimp exporters to shift trade to China and alternative markets, triggering strategic pivots and an expected double-digit decline in export volumes and revenues.
Facing steep US tariffs of 50% imposed from late August 2025, Indian shrimp exporters are redirecting shipments to China and other alternative markets to offset an anticipated 15-18% drop in trade volumes and 18-20% revenue slide for the year.
The US, which had absorbed nearly half of India’s $5 billion shrimp export value, now imposes a 25% reciprocal tariff plus a matching penalty, stacked atop anti-dumping and countervailing duties.
China—already an established seafood processor and redistributor—offers robust domestic demand and forward contracts, mitigating revenue losses for Indian exporters. Exporters also target Europe, UAE, Japan, and South Korea, negotiating new terms with buyers and sharing tariff costs where possible. Domestic consumption within Indian cities is expected to grow,
helping buffer against export declines.
India’s seafood sector is one of several affected by broader shifts in global trade policy, with US tariffs hitting 66% of $86.5 billion in exports across sectors. Ecuador, India’s main competitor for US shrimp exports, currently faces only a 15% tariff and is poised to benefit from demand displacement.
Indian industry leaders emphasise the need to innovate in value-added and processed shrimp segments while advocating for stable trade terms in key markets.
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