Indian shrimp exports in troubled waters after Trump tariffs

Turbulence unleashed by President Donald Trump's tariffs could rock global shipments of shrimp to the United States, with exporters in its biggest supplier, India, saying they endanger 2,000 containers packed with the frozen delicacy.

- SAHIBA CHAWDHARY RISHIKA SADAM YURY GARCIA

But Ecuador, thousands of kilometres nearer to the United States faces a lower tariff rate and stands to benefit, the exporters say, as shrimp is its most important export after oil.

India's shrimp industry is staring at a tariff of 26% under Trump's July plan, which threatens a thriving $7-billion seafood export market heavily reliant on US supermarket chains such as Walmart and Kroger as buyers look to renegotiate rates.

Farmers are seeing demand dry up amid the uncertainty as exporters have cut offer prices by a tenth since the tariffs.

“We are suffering huge losses,’ said SML. Pathi Raju, 63, standing by the aquaculture pond where he feeds and grows shrimp in India’s southern coastal state of Andhra Pradesh.

“We don’t know who can resolve our price issues,” added Mr Raju, one of several families in the state's remote village of Ganapavaram grappling with dwindling sales to exporters.

Many also face high payments for shrimp feed and rentals for the land where the saline ponds have been set up.

“Tam not sure how I will sustain prices,” said another farmer, 60-year-old Uppalapati Nagaraju, adding that he had been entirely unaware of the concept of tariffs.

“Had I known, I would not have started my cultivation.”

ERRATIC DEMAND