'Blessing in disguise': After Trump's tariff, Indian shrimp finds lifeline in China
Chinese importers, backed by strong domestic demand, have responded with forward contracts, making China a fast-growing destination for Indian seafood.
- Sep 24, 2025,
- Updated Sep 24, 2025 1:50 PM IST
Indian shrimp exporters are increasingly shifting focus to China after the United States imposed a 50% tariff on shipments from India, Mint reported on Tuesday. The additional duty-introduced by US President Donald Trump as a trade penalty for India's continued oil imports from Russia-has eroded India's price competitiveness in the American market.
The move now makes Indian shrimp more expensive than competing exports from Ecuador, Vietnam, and Indonesia, prompting Indian suppliers to seek new buyers in China and other Asian markets.
Chinese importers, backed by strong domestic demand, have responded with forward contracts, making China a fast-growing destination for Indian seafood.
"The tariff shock has turned out to be a blessing in disguise for Indian shrimp exporters," Shaji Baby John, chairman and managing director of Kings Infra Ventures Ltd, told Mint. "China, which was previously the second-largest importer of Indian shrimps after the US, has now emerged as one of the most promising markets. It is likely to become the top importer of Indian shrimps in the near future."
Previously treated as a secondary market, China has gained prominence due to its strength in seafood processing and re-export, the report said. Chinese processors source raw shrimp from India to supply duty-free markets, further boosting India's export volumes.
Indian exporters are now widening their focus beyond the US, increasing shipments to China and exploring other markets such as Europe, the UAE, Japan, and South Korea to reduce dependence on American buyers. Exporters with active US contracts are negotiating with importers to share the higher tariff burden, while also ramping up sales in domestic markets like Delhi-NCR, Bengaluru, and Hyderabad, John said.
According to commerce ministry data, India exported marine products worth $7.39 billion in FY25, with $2.68 billion going to the US. In FY24, the US share was $2.50 billion.
The US tariff increase is expected to hit multiple Indian sectors. According to think tank GTRI, those affected include shrimp ($2.24 billion), textiles and clothing ($10.3 billion), gems and jewellery ($12 billion), leather and footwear ($1.18 billion), chemicals ($2.34 billion), and machinery ($9 billion).
Kolkata-based seafood exporter and managing director of Megaa Moda, Yogesh Gupta, warned last month that Indian shrimp is now less competitive in the US market. "We are already facing huge competition from Ecuador as it has only 15 per cent tariff. Indian shrimp already attracts a 2.49 per cent anti-dumping duty and a 5.77 per cent countervailing duty. After this 25 per cent, the duty will be 33.26 per cent from August 7," he said.
Indian shrimp exporters are increasingly shifting focus to China after the United States imposed a 50% tariff on shipments from India, Mint reported on Tuesday. The additional duty-introduced by US President Donald Trump as a trade penalty for India's continued oil imports from Russia-has eroded India's price competitiveness in the American market.
The move now makes Indian shrimp more expensive than competing exports from Ecuador, Vietnam, and Indonesia, prompting Indian suppliers to seek new buyers in China and other Asian markets.
Chinese importers, backed by strong domestic demand, have responded with forward contracts, making China a fast-growing destination for Indian seafood.
"The tariff shock has turned out to be a blessing in disguise for Indian shrimp exporters," Shaji Baby John, chairman and managing director of Kings Infra Ventures Ltd, told Mint. "China, which was previously the second-largest importer of Indian shrimps after the US, has now emerged as one of the most promising markets. It is likely to become the top importer of Indian shrimps in the near future."
Previously treated as a secondary market, China has gained prominence due to its strength in seafood processing and re-export, the report said. Chinese processors source raw shrimp from India to supply duty-free markets, further boosting India's export volumes.
Indian exporters are now widening their focus beyond the US, increasing shipments to China and exploring other markets such as Europe, the UAE, Japan, and South Korea to reduce dependence on American buyers. Exporters with active US contracts are negotiating with importers to share the higher tariff burden, while also ramping up sales in domestic markets like Delhi-NCR, Bengaluru, and Hyderabad, John said.
According to commerce ministry data, India exported marine products worth $7.39 billion in FY25, with $2.68 billion going to the US. In FY24, the US share was $2.50 billion.
The US tariff increase is expected to hit multiple Indian sectors. According to think tank GTRI, those affected include shrimp ($2.24 billion), textiles and clothing ($10.3 billion), gems and jewellery ($12 billion), leather and footwear ($1.18 billion), chemicals ($2.34 billion), and machinery ($9 billion).
Kolkata-based seafood exporter and managing director of Megaa Moda, Yogesh Gupta, warned last month that Indian shrimp is now less competitive in the US market. "We are already facing huge competition from Ecuador as it has only 15 per cent tariff. Indian shrimp already attracts a 2.49 per cent anti-dumping duty and a 5.77 per cent countervailing duty. After this 25 per cent, the duty will be 33.26 per cent from August 7," he said.