Following the imposition of a 50% tariff on Indian shrimp by the United States—introduced by former President Donald Trump in response to India’s oil imports from Russia—Indian shrimp exporters are rapidly shifting focus to China and other Asian markets to sustain their businesses.
The new duty has severely affected India’s price competitiveness in the US, making Indian shrimp costlier than exports from Ecuador, Vietnam, and Indonesia. As a result, exporters are finding China to be a promising alternative, with strong domestic demand and active forward contracting by Chinese importers.
“The tariff shock has turned out to be a blessing in disguise,” said Shaji Baby John, Chairman of Kings Infra Ventures, noting that China—previously the second-largest importer—is now poised to become India’s top shrimp buyer. Chinese processors prefer Indian shrimp for re-export to duty-free markets, further boosting demand.
Exporters are now diversifying their markets, expanding shipments to Europe, Japan, the UAE, and South Korea, while also promoting sales in domestic hubs like Delhi-NCR, Bengaluru, and Hyderabad.
According to the Commerce Ministry, India exported USD 7.39 billion worth of marine products in FY25, with USD 2.68 billion going to the US, up from USD 2.5 billion in FY24. However, the increased tariff—now totaling 33.26%—makes Indian shrimp less competitive compared to Ecuador’s 15%.
