India’s seafood exporters are preparing to dispatch around 35,000 to 40,000 tonnes of shrimp to the U.S. after a significant easing in tension at trade after U.S. President Donald Trump delayed the implementation of a steep 26 percent reciprocal tariff. The Indian seafood industry breathed a big sigh of relief as this was a very crucial decision. The tariff has been rolled back to 10 percent, becoming in line with the other shrimp exporting countries as a result of the pause.
The development was optimistic, and K N Raghavan, Secretary General of the Seafood Exporters Association of India, spoke to the media about it. “We are at par with other exporters to the US, and there is lot of relief now. This is why now the shipments that were held back will be processed,” he said. The tariff uncertainty has stalled about 2,000 containers of shrimp, which were now prepared for export after Trump’s decision on April 9 to reverse the earlier hike on April 2.
However, they will provide temporary relief to all except China, which will continue to have a much higher duty rate of 145 percent. India’s total customs duty on its shrimp exports to the U.S. is currently 17.7 percent effective total customs duty, i.e., 5.7 percent countervailing duty plus 1.8 percent anti-dumping duty.
Indian exporters have been highlighted by industry insiders as being generally destined to work under delivery duty-paid contracts, which means that they have to cover all the costs related to tariffs. It would have very severely impacted their profit margins and messed up any contracts they had already signed. However, the latest development provides a temporary reprieve, allowing the Indian exporting seafood companies to service backlogged orders and help retain their share in the U.S. seafood market.
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