India Eyes Russia, China, and New Markets After US Tariff Hike on Seafood Exports

India is taking decisive steps to counter the steep 50% tariff imposed by the US on Indian exports, especially frozen shrimp, by aggressively exploring alternative export markets and alerting domestic traders about the changing trade landscape. The tariff hike, announced by President Donald Trump as a penalty for India’s continued oil trade with Russia, threatens India’s dominant position in the US seafood market and has triggered a rapid response from both the government and industry.

Impact of US Tariffs and Government Response

The US accounted for about 35–40% of India’s $7.38 billion seafood exports in FY25, with Indian frozen shrimp making up the largest share. However, the new tariff, set to fully take effect on August 27, 2025, is expected to significantly reduce India’s market share and could put exports worth over ₹25,000 crore at risk. As a result, the Indian government has convened urgent meetings with seafood exporters and issued clear advisories to seek out new overseas buyers and markets to minimize losses.

Exploring New Markets: Russia, China, and Beyond

To sustain its export momentum, India is pivoting towards several alternative and emerging markets:

• Russia and China: With the US market shrinking, India is aiming to bolster seafood trade with Russia (which is similarly targeted by US tariffs) and China. Both countries already import Indian seafood and are now considered priority destinations for expanded trade ties.

• Other Focus Markets: The government has identified the UK, European Union (EU), Oman, UAE, and South Korea as key growth markets. South Korea, in particular, is seen as a major consumer ripe for rapid expansion of Indian seafood exports.

• Middle East and Southeast Asia: These regions are being actively explored, with special attention to their rising demand for Indian marine products.

Strategies for Exporters

Union Fisheries Minister Rajiv Ranjan Singh advised exporters to focus on greater value addition and improved packaging to make Indian seafood more competitive in new markets. Support schemes and infrastructure investments are being encouraged to modernize processing, strengthen cold chains, and ensure compliance with quality standards in target countries.

Shrimp and Fish Trade Data

• India’s seafood exports (FY25): $7.38 billion, double the value from a decade ago.

• US share: Around $2.8 billion (about 35–40%)—now vulnerable due to tariffs.

• Main products: Frozen shrimp, especially Vannamei shrimp, dominate India’s seafood exports.

Broader Geopolitical Realignment

Former US officials and analysts warn that these tariffs, meant to pressure India over its oil trade with Russia, may actually push India to deepen economic ties with Russia and China, potentially weakening decades of US-India strategic partnership. With the US previously being India’s largest shrimp market, the shift could significantly reshape global seafood supply chains.