India’s commerce ministry is actively monitoring the U.S. Department of Commerce’s actions regarding countervailing duties (CVD) and anti-dumping duties (ADD) on shrimp imports from India, according to anonymous official sources. As both nations strive to resolve trade tensions and align tariff frameworks under the Bilateral Trade Agreement (BTA), India may consider adjusting its import duties in response to any changes made by the U.S.
An official noted that such recalibration could reflect India’s commitment to fair trade practices while protecting the interests of its shrimp farming and processing sectors. Any potential adjustment in India’s tariffs would also take into account global price trends and competitive dynamics in key markets such as the U.S., Japan, and the EU.
Currently, Indian shrimp exports to the U.S. are subject to a considerable customs duty of 17.7%, which comprises a 5.77% CVD and a 1.8% ADD, in addition to a 10% baseline tariff imposed on April 2. In contrast, India imposes a 30% duty on U.S.-origin Vannamei shrimp, also known as Pacific white shrimp.
Competing countries face varying duties; for instance, Ecuador has a CVD of 7.55%, while Vietnam is encountering a CVD of 2.84% alongside a preliminary anti-dumping duty of 35% that was imposed in June 2025. Thailand’s Charoen Pokphand Foods PCL, a major player in shrimp production, is facing a staggering preliminary ADD of 57.6%.
During the 2024-25 fiscal year, India exported marine products worth over $6 billion, with frozen shrimp contributing a substantial portion, according to the Marine Products Export Development Authority (MPEDA). In contrast, Indian imports of seafood from the U.S. totaled $13.76 million in 2023-24.
Pawan Kumar G., president of the Seafood Exporters Association of India, emphasized that reducing tariffs, particularly CVD and ADD, would significantly boost Indian shrimp exports. He expressed hope that the Indian government would prioritize this issue during bilateral discussions.
As BTA negotiations enter a crucial phase, trade analysts see opportunities for both countries to implement coordinated changes that could ease trade friction. However, the anticipated 10% base tariff alongside an additional 16% reciprocal tariff poses a serious threat to India’s seafood exports to the U.S., which represent nearly one-third of the country’s global seafood exports. A report by the Global Trade Research Initiative (GTRI) predicts that India could face a 20.2% decline in these exports, resulting in a loss of approximately $404.3 million. The situation is exacerbated by Canadian seafood’s duty-free access under the USMCA trade agreement.
Processed meat and fish exports are also likely to suffer significant losses, with estimates highlighting a drop of $83.1 million, or 14.2%, as tariffs rise dramatically from 2.6% to 31.2%.
In light of these developments, India must navigate this complex landscape carefully, balancing domestic interests with international trade commitments to ensure sustained growth in its seafood export sector.
Original Source: https://www.livemint.com/news/indiaus-trade-talks-bilateral-trade-agreement-bta-reciprocal-tariffs-shrimp-exports-seafood-imports-11750650667296.html
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Publish Date: 2025-06-23 13:05:00
