India's Seafood Export Association (SEAI) has appealed to the central government for emergency financial support after a new wave of United States tariffs threatened $2 billion worth of shrimp exports.

The move comes in response to President Donald Trump's decision last week to increase "reciprocal tariffs" on Indian goods, making Indian shrimp significantly less competitive in the American market.

SEAI Secretary General KN Raghavan told PTI that the association has requested a 30% increase in working capital through soft loans to help exporters navigate the crisis. The proposal includes a 240-day moratorium on pre- and post-packaging operations to provide a financial cushion.

Tariffs Threaten Market Share and Jobs

According to Raghavan, the new duties have raised the tariff on Indian goods from 25% to up to 50%. This puts Indian seafood at a major disadvantage compared to competitors like China, Vietnam, and Thailand, which face tariffs of only 20-30%.

India exported $2.8 billion worth of shrimp to the US in 2024, and has already shipped $500 million this year. The increased duties not only risk a loss of market share to Asian rivals but also present a major logistical challenge, as exporters cannot reroute existing shipments without incurring a heavy 40% penalty for contract violations.

The seafood industry is a cornerstone of India's agricultural exports, employing millions across coastal states and generating substantial foreign exchange.

Raghavan warned that finding new markets is a long-term solution that will take time, pointing to the recently signed free trade deal with the UK as an example of a potential, but not immediate, alternative.