Trump’s 25% tariff likely to hit seafood exports from A.P.

With U.S. President Donald Trump announcing a 25% tariff on Indian products, the aquaculture sector in Andhra Pradesh is likely to be severely affected, causing significant losses to shrimp farmers whose produces are exported.

The revised tariff imposed by the Trump administration will come into effect on August 7.

Aquaculture farmers in Andhra Pradesh who are exporting their produce to the U.S.A. have to bear about 35% tariff, including 25% tariff, 5.77% countervailing duty and 3.96% anti-dumping duty from August 7, says the Seafood Exporters Association of India (SEAI) members.

Approximately 6.5 lakh aquaculture farmers cultivate shrimp, crab, fish, and other varieties in 5.7 lakh acres in Andhra Pradesh. Nearly 50 lakh persons are employed in the aqua sector, including in ponds, laboratories, export companies, processing and packing units, hatcheries, feed companies, ice factories and cold storage units.

During the 2023-24 financial year, India exported 17,81,602 metric tonnes of seafood worth $7.38 Billion (₹60,523.89 crore). The contribution of Andhra Pradesh was 9.52% Compound Annual Growth Rate (CAGR), worth around ₹19,428 crore, said Joint Director (Aquaculture) Shaik Lal Mohammad.

“India is exporting shrimp, frozen fish, frozen squid, cuttle fish, lobster, crabs and other products to more than 120 countries,” said Marine Products Export Development Authority (MPEDA) officials.

The U.S. is the major importer of Indian seafood with a share of 34.53% in terms of US$, followed by China (18.76%), Thailand (7.77%), Vietnam (7.41%) and Japan (6.06%).

Andhra Pradesh State Aquaculture Development Authority (APSADA) Vice-Chairman Anam Venkata Ramana Reddy on Tuesday told The Hindu that the government was making efforts to prevent losses to aqua farmers in the State.

Farmers said the aqua sector in A.P. was facing a severe crisis after the U.S. announced 26% reciprocal tariff in April this year. As the price of shrimp had fallen in the international market, many farmers announced crop holiday, the producers said.

“We are not in a position to continue aquaculture by paying a 35% tariff to the U.S., which is the major importer of our produce. The Central government should take measures to save the sector in Andhra Pradesh,” said A. Veerraju, an aquaculture farmer from Kaikalur in Eluru district.