India to Export 40,000 Tonnes of Shrimp to US Following Tariff Reduction
India is preparing to export 35,000-40,000 tonnes of shrimp to the US after President Trump’s decision to pause a proposed 26% tariff, reducing it to 10%. This allows exporters to process delayed shipments without incurring higher costs, with no decline in US orders, which reached USD 2.7 billion in 2023-24. The Seafood Exporters Association urges government action for fair trade conditions.
India’s seafood exporters are poised to dispatch between 35,000 and 40,000 tonnes of shrimp to the United States, following the recent decision by President Donald Trump to pause a planned 26 percent reciprocal tariff, reducing it to 10 percent. This decision, made on April 9, has brought stability to order levels, as confirmed by industry officials.
K.N. Raghavan, Secretary General of the Seafood Exporters Association of India, expressed considerable relief regarding the tariff changes. “There is a lot of relief now as we are at par with other exporters to the US. Now the shipments that were held back will be processed,” he stated, indicating that around 2,000 containers previously delayed are now being prepared for export.
The temporary tariff pause will maintain a standard 10 percent duty on all countries except China, which faces a significantly higher 145 percent tariff. Indian shrimp currently incurs an effective customs duty of 17.7 percent, including countervailing and anti-dumping duties. The new arrangements allow exporters to manage costs more effectively, especially for previously contracted shipments.
An industry representative noted, “The 90-day pause provides exporters the opportunity to fulfil these orders without the extra cost.” Notably, orders from the United States, India’s primary shrimp market by volume and value, have not seen a significant decline; in the fiscal year 2023-24, India exported shrimp amounting to USD 2.7 billion to the US.
In light of these developments, Raghavan has urged the government to advocate for a “level-playing field” for seafood exports in imminent trade discussions with the intention of sustaining favorable export conditions beyond the temporary tariff relief.
In conclusion, India’s seafood sector is set to benefit from a significant tariff reduction on shrimp exports to the United States, enabling exporters to meet demand without incurring additional costs. With orders stable and the market outlook positive, it is crucial for the government to advocate for equitable trade terms to enhance competitiveness in future negotiations. The temporary tariff pause positively impacts India’s shrimp export dynamics, reaffirming the United States as a vital market.
Original Source: www.livemint.com
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