Can Tough Tariffs Rock India's Shrimp Exports?

In a move that reaffirms his hardline “America First” stance, U.S. President Donald Trump has revived his call for reciprocal tariffs, targeting trade partners with imbalanced duties.

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According to the U.S. Bureau of Economic Analysis and The White House (2025), America’s trade deficit surged by 32.7 per cent between 2020 and 2024—but the pace was far steeper with key partners: a staggering 278.5 per cent jump with Canada, 161 per cent with South Korea, 147.1 per cent with Taiwan, and 88.1 per cent with India—putting Delhi squarely on Washington’s trade radar. What’s unfolding is a textbook case of duelling protectionisms. On one side, Trump is pushing to level the playing field with tariffs that match what other countries impose on U.S. goods. On the other hand, India is standing its ground with Atmanirbhar Bharat, its economic self-reliance campaign built around safeguarding domestic industries, especially agriculture. At the heart of India’s strategy lies a deeply entrenched system of high agricultural tariffs designed to shield millions of smallholder farmers from volatile global markets.

While these policies shield producers, they shrink consumer choice and drive up costs. If the U.S. goes ahead with retaliatory tariffs, the first hit is likely to land on India’s agricultural exports, which currently enjoy a trade surplus with the U.S, India’s largest trading partner. Its $119.7 billion bilateral trade with the U.S. in 2023-24 is not only growing—it's strategic. Yet, the imbalance in dependence is clear: India leans more on U.S. trade than vice versa. With talks now underway to scale that figure up to $500 billion under the ambitious “Mission 500” by 2030, the tariff tensions could not come at a more delicate time.