Headline: US 50% Tariff Hits Indian White Shrimp Hard; China Becomes a Critical "Lifeline"

On August 27, 2025, a major tariff hike from the US sent shockwaves through India’s white shrimp industry: tariffs on white shrimp jumped from 25% to 50%, a move that severely disrupted India’s key export channel—long dependent on the US market.

Key Facts About India’s White Shrimp Sector

• India exports nearly 1.3 million tons of aquatic products yearly, with white shrimp contributing 92% of total export value.

• In FY2024/25, the US alone imported 311,000 tons of Indian white shrimp (nearly a quarter of India’s total white shrimp exports).

• Post-tariff impact: Existing orders have been suspended, new inquiries have plummeted, and even long-term clients are holding off on new purchases.

India Turns to China for Relief

Faced with the US market setback, India is urgently looking to China as an alternative:

• In FY2024/25, India exported 136,000 tons of white shrimp to China—only half of its US exports, leaving significant growth room.

• Optimism is fueled by improving China-India relations, with Indian PM Modi scheduled to visit China on August 31.

Yet China’s market has its own challenges:

• Weak domestic consumer demand for aquatic products.

• A surge in wild seafood supply, squeezing white shrimp prices.

• Chinese importers remain cautious, fearing price chaos from India’s hasty capacity shift, leading many to reduce order volumes.

India’s Domestic Efforts & Price Trends

To ease pressure, India is also boosting domestic consumption (current annual white shrimp sales: 100,000–300,000 tons). However:

• Poor cold chain logistics drive up storage/transport costs and waste.

• Indian consumers prefer fresh seafood over frozen options, limiting domestic market expansion.

• The government is considering support measures (loans, tax breaks, consumer subsidies), but their effectiveness remains unproven.

Price drops already visible: In late August, 40-count white shrimp fell by 40 rupees/kg, and 60-count by 30 rupees/kg. Worse declines are expected when new shrimp harvests hit the market in September–October.

Notably, black tiger shrimp (5% of India’s total shrimp output) is unaffected—its main markets are China and Europe—but it is too small a segment to offset the white shrimp crisis.

Will China Be a True "Lifeline"?

Three factors will determine success:

1. The speed of China’s domestic demand recovery.

2. Chinese importers’ risk tolerance.

3. China’s ability to regulate white shrimp prices to avoid market disorder.