Trump’s 50% Tariff on India Disrupts Life of Odisha’s Shrimp Farmers

Bhubaneswar, Aug 8: Odisha’s thriving fisheries industry, a cornerstone of the state’s coastal economy, is bracing for a severe blow following U.S. President Donald Trump’s imposition of a 50 per cent tariff on Indian goods, effective August 27, 2025.

The tariff, announced as a penalty for India’s continued purchase of Russian crude oil, is set to disrupt the state’s lucrative shrimp exports to the United States, its largest overseas market, jeopardizing the livelihoods of thousands of farmers, workers, and exporters.

Odisha’s marine exports to the U.S., valued at $170 million in FY 2024-25, are dominated by frozen Vannamei shrimp, which accounts for 99.5 per cent of the state’s seafood shipments to the American market.

Over 30 per cent of Odisha’s shrimp consignments are destined for the U.S., making the industry particularly vulnerable to the steep tariff hike.

The new duties, which include a 25 per cent tariff announced on July 30 and an additional 25 per cent penalty, have already triggered a sharp decline in shrimp prices, with farm-gate prices for the popular 40-count shrimp dropping by nearly 19 per cent in the past week to around Rs 365 per kilogram, media reports said quoting industry traders.

“The impact is immediate and devastating,” said Sangram Das, vice-president of the Odisha Chapter of the Seafood Exporters Association of India, talking to media.

“U.S. buyers are holding back orders or renegotiating contracts, leaving exporters in a lurch. This tariff makes our shrimp uncompetitive compared to suppliers like Ecuador or Chile, who face lower or no duties.” The Global Trade Research Initiative (GTRI) projects that shrimp exports could plummet by 50-70 per cent due to the tariff, threatening an industry that supports millions of jobs across aquaculture farms, hatcheries, processing units, and logistics in Odisha’s coastal districts like Balasore and Bhadrak.

The ripple effects are already being felt. In Balasore, a hub for shrimp cultivation, local farmers are grappling with uncertainty. “We’ve invested heavily in this season’s crop, but with prices crashing, we’re facing losses,” said Ramesh Sahu to media, a shrimp farmer with a 10-acre farm. “The U.S. market was our lifeline, and now we’re not sure how to sustain.” The industry also fears job losses, with roles from farm workers to cold storage operators at risk.

Industry leaders are urging the Indian government to engage in urgent trade negotiations with the U.S. to secure exemptions or relief measures for the seafood sector. Prime Minister Narendra Modi, responding to the tariff escalation, emphasized that India will not compromise the interests of its farmers and fishermen, stating,

As Odisha’s shrimp industry navigates this crisis, the state’s coastal communities face an uncertain future. With business worth Rs 24,000–25,000 crore at stake nationally, the fallout from Trump’s tariffs could reshape India’s seafood export landscape, hitting Odisha hardest.

Industry stakeholders are calling for financial support and strategic interventions to cushion the blow and protect the livelihoods of millions tied to this vital sector.