Trump’s Tariffs Skewer Indian Shrimp Industry, Leaving Thousands Jobless in Visakhapatnam

In the U.S., shrimp consumption has become a cultural phenomenon, with Americans consuming approximately 5.5 pounds per person annually – making up about 40% of which comes from India. However, President Trump’s tariffs on various Indian sectors have significantly impacted this industry.

Originally exporting $2.5 billion worth of shrimp to the U.S., the eastern state of Andhra Pradesh, with its high percentage (75-85%) of shrimp exports going to the U.S., has been hit particularly hard by these tariffs. Initially set at 25%, they were subsequently doubled to 50% as a means to punish India for being one of the world’s largest purchasers of Russian oil.

The consequences have been profound, affecting workers such as Sita, a single mother who supports two teenage boys through work in a shrimp processing plant. In July, she was told by her supervisor that there would be no more shifts until further notice, leaving her struggling to make ends meet and facing the possibility of pausing her sons’ education due to unpaid school fees.

Sita is among dozens of women who have lost their jobs or seen their hours drastically reduced in recent weeks, fearful of losing their employment permanently if identified. The industry employs over a million people across numerous export companies, shrimp hatcheries, feed mills, individual middlemen, and small-scale farmers, with processing plants offering the majority of employment.

Women like Sita often work long hours handling ice-cold shrimp for packaging, earning around $100 a month (with luckier workers making around $220). The work is physically demanding, leading to health issues such as swollen feet, backaches, and joint pain. A day off means no pay, forcing many to continue working despite their discomfort.

The shrimp industry has been criticized for widespread underpayment, exploitation of vulnerable migrants, forced labor, and the use of antibiotics in farming practices. In some regions, powerful figures have been accused of seizing land from female rice farmers to convert it into shrimp farms.

Now, with tariffs taking effect, the industry is experiencing a dramatic slowdown. According to Pawan Kumar Gunturu, head of the Seafood Exporters Association of India and managing director of Sprint Exports, all shipments have come to a halt due to uncertainty surrounding who would bear the added cost of the tariffs.

The U.N.’s Food and Agriculture Organization (FAO) reported a surge in Asian shrimp exports to the U.S. before tariffs rose to 25%, but noted a drastic drop in farm sales – nearly 90% – due to decreased demand from the U.S.

Major exporters are attempting to diversify their markets, looking to countries such as the United Kingdom, other European nations, South Korea, and Japan. However, industry leaders like Arjilli Dasu of the Federation of Indian Fisher Organizations fear that most players cannot wait this long due to thin profit margins.

Farmers like Rajakrishnan Raju believe this could be their final harvest, as they struggle to cover up-front costs such as purchasing fry (hatchlings), feed, power for aeration and fresh sea water, while facing reduced demand and lower prices due to the tariffs. The future of the shrimp industry, along with other sectors hit by Trump’s tariffs, remains uncertain.

Economist Shoumitro Chatterjee of Johns Hopkins University expressed pessimism about the situation, stating that industries may struggle to survive under 50% tariffs when compared to lower rates on imports from competing countries such as Pakistan, Bangladesh, and Vietnam. He warned that the impact will be particularly severe on labor-intensive sectors like apparel, footwear, leather, textile, and food processing, which provide much-needed employment in India despite low wages.

Exemptions for key Indian industries, such as pharmaceuticals and smartphones (including iPhones), offer some hope, but the long-term effects of these tariffs on the shrimp industry and other sectors are still unclear. The Indian Ministry of Commerce has yet to respond to requests for information regarding plans to mitigate the impact of tariffs, while ongoing trade talks between Washington and New Delhi continue.