As US reciprocal tax kicks in, Indian seafood sector left in rough waters

Stakeholders worry small producers like Ecuador may take over the American market

- MANOJ VISWANATHAN @Kochi

THE DECISION of the US administration to impose 34.26% tax on Indian marine food products has left the seafood exporters and shrimp farmers in the country in deep distress.

Though there is no indication on tariff negotiations, the seafood exporters are hopeful that the US may reduce the tariffs.

If the US administration refuses to reduce the reciprocal tax, small producers like Ecuador may take over the US market riding on the tax advantage and India will be the loser as we have a 40% share in the US seafood market.

As per information, the US has decided to impose an anti-dumping duty of 2.49%, countervailing duty of 5.77% and reciprocal tariff of 26% which will raise the tariff to a total of 34.26%.

The situation will be advantageous to Ecuador as its tariff is only 13.78%.