Seafood exports: Stuck on a raft of uncertainty

Even if Trump's tariff flip-flops didn't leave Indian seafood exporters queasy, the resultant decision paralysis has been bad enough. Exporters need a compass. So does US trade policy

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Winds blowing hot and cold from Washington this April have left India's seafood exporters at sea, afloat but gripped with uncertainty. US President Donald Trump's attempt at a trade reset has meant this sector saw tariff rates on shipments swell, crest and crash from being nearly duty-free to 10% on 5 April, then to 26% four days later, and now back to 10%—at least till early July. Even if it did not make exporters queasy, the US policy flip-flop made it hard for them to chart out a course.

America is their biggest export market, accounting for over a third of Indian shipments by value. In 2023-24, the US imported over $2.5 billion worth of seafood from India, of which 92% was frozen shrimp. Much of this business is contract led, with US-based importers bearing the risk of tariff hikes, but not all of it. Plus, the fine-print could be invoked in some cases to cancel orders or reject consignments upon arrival. Associations of seafood exporters have shared stories of dispatch disruption and deep anxiety.