The Indian aquaculture industry calls on the government for support to counter the high tariffs imposed by the United States.

The new tariff structure includes a 50% basic tariff, a 2.65% anti-dumping duty, and a 5.77% countervailing duty (CVD). Additionally, the U.S. has imposed an extra 25% punitive tariff due to India's purchase of Russian oil, which is considered the main reason for the tariff increase.

Tamil Nadu has a total of 25 seafood export enterprises, with at least 15 located in Thoothukudi, which process and export frozen shrimp, squid, octopus, fish, and crabs through VOC Port to markets in the U.S., Japan, and Europe.

Now, these enterprises are facing severe competitive challenges.

Tamil Nadu has been particularly hard hit by the tariff shock, and the impact of this policy has spread across India.

Andhra Pradesh, as India's main shrimp-producing region, with a production volume accounting for nearly 70% of the national total, has now become the "epicenter" of this crisis.

According to the Indian Seafood Exporters' Association, the new tariffs have led to U.S. buyers canceling orders, and Indian shrimp products have completely lost their price advantage in competition with rivals.

The U.S., as India's largest buyer of seafood, purchased 329,000 tons of Indian seafood worth $2.55 billion in the 2023-2024 fiscal year.

The significant tariff increase has made it difficult for Indian exporters to compete with countries like Ecuador and Indonesia, and as a result, U.S. buyers are shifting their orders to these low-cost supply centers. In June alone, Ecuador's seafood exports to the U.S. increased by 44%.

Selwin Prabhu, the president of the Tamil Nadu branch of the Seafood Exporters' Association of India (SEAI), warned that the tariff increase could lead to large-scale unemployment in the labor-intensive seafood industry. He has called on the government to provide support, including low-interest loans, credit subsidies, and emergency relief funds.

To address the crisis, the Indian government is actively exploring new export markets in South Korea, Australia, Russia, and the European Union. Officials are also considering adjusting the Goods and Services Tax (GST) structure to stimulate domestic consumption and support affected industries.