Trump's Tariffs Impacting the Shrimp Industry's Collapse
In the heart of India, from Bengal's tidal flats to Tamil Nadu's export hubs, a crisis is unfolding. The shrimp industry, a significant economic pillar, is reeling under the impact of US tariffs on marine exports, particularly shrimp.
The tariffs, which doubled to 50% as of late August 2025, have sent shockwaves through the industry. Shrimp farm-gate prices have plummeted, with the most common shrimp variety for the US market falling by nearly 19%. This price collapse directly affects farmer incomes in regions like Andhra Pradesh and Odisha, where shrimp farming is a critical livelihood.
Andhra Pradesh, a state that produces 60% of India’s shrimp exported to the US, is particularly hard-hit. With the 50% tariff, shrimp farmers fear being priced out of this major market and are shifting towards smaller shrimp varieties less preferred in the US. The Seafood Exporters Association warns the sector could come to a complete halt, threatening not only aquafarms but also hatcheries, processing units, packaging units, cold storages, and related jobs. Over 6.5 lakh aquafarmers and an additional 30-40 lakh people dependent on different stages of the shrimp industry could face livelihood losses.
The US accounts for nearly 40% of India’s marine products export. The new tariff hikes, linked to geopolitical issues, could reduce India’s merchandise exports to the US by 40-45% in 2025-26, hitting low-margin, labor-intensive goods like shrimp particularly hard.
The government has expressed no expectation of immediate relief on tariffs but plans to support affected exporters financially and diversify export markets to countries like China, Latin America, and the Middle East. Andhra Pradesh’s industry leaders have called for state government packages to mitigate the impact.
The shrimp industry's reliance on the US market has left it vulnerable to trade politics. The crisis is about survival for women workers, who face exploitation and loss of wages, savings, and social security when orders disappear. In the sheds, women workers are subjected to hidden exploitation, including pregnancy tests before hiring, dismissals when pregnant, denial of lighter duties, cramped dormitories with curfews for migrant women, and long hours without overtime on a piece-rate system.
The shrimp industry in India is structured as a pyramid, with exporters and processing companies at the top, followed by pond owners, contractors, feed suppliers, and traders. The SEAI secretary-general, K. N. Raghavan, argues that the way forward for the industry lies in integration, value addition at home, and diversification into new markets.
The US tariffs have led to a shift in shrimp cultivation practices. Faced with the prospect of being priced out of the US market, farmers are turning to smaller shrimp varieties less preferred in the US. The Andhra government has formed a 16-member panel to study Ecuador's model and scout new markets, as the Godavari region produces four lakh tonnes of shrimp annually, of which 3.5 lakh are meant for export.
The crisis extends beyond Andhra Pradesh. The shrimp industry in West Bengal's Purba Medinipur and the Sundarbans, as well as in Odisha and Tamil Nadu, have also been impacted by the US tariffs, with American buyers pulling out or demanding discounts. In Kanyakumari, US buyers began scaling down before the tariffs, leaving exporters scrambling to find new markets in Europe and Asia. Containers meant for supermarkets in New York and Texas remain sealed in the cold storage yards of Visakhapatnam, with their contents frozen not just by ice but by trade politics.
The shrimp industry's woes are a stark reminder of the ecological and economic costs of aquaculture boom. Each prawn carries the weight of numbed fingers in peeling sheds, vanished mangroves, mounting farmer debt, and the reminder that the ecological bill is yet to be paid. The fate of millions in India can be reshaped by decisions made half a world away.
