VIJAYAWADA: Expressing deep concern over the devastating impact of American President Donald Trump’s reciprocal tariffs on Andhra Pradesh’s aquaculture industry, Chief Minister N Chandrababu Naidu has sought the immediate intervention of Union Minister for Commerce and Industry Piyush Goyal.
In a letter written to the Union Minister, Naidu highlighted the crucial role the aqua sector plays in AP’s Gross State Domestic Product (GSDP), and urged the Central support to aqua farmers facing mounting losses.
The US government recently imposed a steep 27% duty on marine food imports from India, effective from April 5, 2025, severely affecting the country’s shrimp-dominated trade. In the financial year 2023-24, India exported marine food products worth $2.55 billion to the US, with shrimp accounting for 92% of the total volume.
Naidu warned that this tariff, combined with an existing 5.77% Countervailing Duty (CVD), places Indian exporters at a significant disadvantage, compared to competitors like Ecuador, which faces only a 10% duty. This nearly 20% duty gap is threatening India’s position in the US market.
The fallout is already evident. Shipments prepared under earlier orders, now packed and stored in cold storages and ports, are subject to the increased duties, leaving exporters and farmers in a financial bind, he explained. In Andhra Pradesh, cold storages are overflowing, and with harvests piling up, aqua farmers are struggling to find buyers, he said.
Act swiftly to avert major crisis, CM urges Centre
Exporters have halted procurement due to the prohibitive costs, plunging the State’s aqua sector into a crisis, the Chief Minister said.
He also pointed to global trade dynamics exacerbating the situation.
Countries like Vietnam, Thailand and Japan, which traditionally procure seafood from India for processing, and re-export to the US, are now cancelling orders due to the high tariffs on finished products.
Meanwhile, in the European Union, Indian exporters face additional hurdles, including 50% inspection rates and 4-7% import duties, while competitors like Vietnam benefit from zero-duty access under a Free Trade Agreement (FTA), he elaborated.
The Chief Minister emphasised the widespread impact on stakeholders — farmers, hatcheries, feed mills, processors and exporters — whose livelihoods are at stake.
Naidu urged the Government of India to engage with the US authorities to secure an exemption for shrimp from the tariff list, calling for swift action to avert further economic damage.
“Your timely intervention can safeguard the livelihoods of lakhs of people dependent on the aqua sector,” the Chief Minister stated in the letter, underscoring the urgency of resolving the crisis threatening one of Andhra Pradesh’s economic lifelines which is essential to its revival.