NextFin news, On Tuesday, September 16, 2025, Andhra Pradesh's shrimp export industry faced a severe crisis as US tariffs imposed by former President Donald Trump caused losses estimated at Rs 25,000 crore. The state, which accounts for 80% of India's shrimp exports and 34% of total marine exports worth Rs 21,246 crore annually, saw about half of its export orders cancelled.
The US tariffs on Andhra shrimp exports escalated to 59.72%, combining an additional 25% levy over an earlier 25%, along with a 5.76% countervailing duty and a 3.96% anti-dumping duty. This tariff hike affected approximately 2,000 shipping containers, imposing an additional burden of Rs 600 crore on exporters.
Chief Minister N. Chandrababu Naidu has formally appealed to the Indian central government for urgent intervention. In letters addressed to Union Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Fisheries Minister Rajeev Ranjan Singh, Naidu requested tax relief measures including GST waivers, interest subsidies, and a 240-day moratorium on loan repayments for aqua farmers.
Naidu also advocated for the negotiation of Free Trade Agreements with the European Union, South Korea, Saudi Arabia, and Russia to diversify export markets and reduce dependency on the US market. He highlighted that over 30 lakh people in Andhra Pradesh depend on shrimp farming and related activities for their livelihoods.
To mitigate the crisis, the Andhra Pradesh government has already reduced aqua feed prices by Rs 9 per kilogram and is considering subsidies on transformers used in shrimp farming. Naidu emphasized the hardships faced by aqua farmers and their families due to the tariff-induced export disruptions.
Furthermore, Naidu called for interim financial support and clarity on central relief schemes. He noted that exporters are prepared to supply seafood to the European Union if market access conditions improve, signaling a potential shift in trade focus.
The tariff increase follows former President Trump's policy to impose additional levies on Indian seafood imports, aiming to protect US domestic industries but resulting in significant economic strain on Andhra Pradesh's shrimp exporters.
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