The Indian high-value-added shrimp sector will be the most favored.

U.S. Cuts Tariffs on Indian Seafood to 18% in Landmark Trade Deal

INDIA
Thursday, February 05, 2026, 00:10 (GMT + 9)

New Delhi / Washington DC — In a major trade development, the United States has reduced import tariffs on Indian goods — including seafood such as white shrimp — to 18%, providing significant relief to exporters hit by previous punitive duties. The move follows a high-level agreement between US President Donald Trump and Indian Prime Minister Narendra Modi aimed at easing bilateral trade tensions and bolstering economic cooperation.

Strategic Trade Shift Linked to Energy Policy

On February 2, 2026 , President Trump announced the tariff cut, saying it came after India agreed to halt purchases of Russian crude oil and instead increase imports of US energy products. According to Trump's announcement, India will also lower its own tariffs and non-tariff barriers on US goods, with the eventual aim of eliminating trade barriers altogether.

“This agreement will strengthen ties between our two countries and open American markets to more Indian products,” Trump said in a social media post, adding that India would buy $500 billion in US goods over the coming years.

Prime Minister Modi thanked President Trump for the move, describing the tariff reduction as a “ big boost to Indian exporters ,” especially those in labor-intensive sectors.

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Tariff History and Impact on Shrimp Exports

The tariff cut marks a dramatic reversal from the punitive trade measures introduced in 2025. In August that year, the US imposed an additional 25 % punitive tariff on Indian imports — on top of an existing 25 % reciprocal duty — in response to India's continued purchases of discounted Russian oil, effectively pushing tariffs on many products to 50 % or more .

Indian white shrimp exporters were among the hardest hit by the elevated duties. During the period of high tariffs, Indian shippers faced steep disadvantages in the US market, prompting many to redirect shipments to alternative markets such as China, the European Union, and Japan .

According to industry data, India's total seafood exports to the United States dropped sharply following the tariff hikes, contributing to shifts in global market share. Eased tariffs are expected to revive demand for Indian seafood in the US after a prolonged downturn.

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Global Trade Ripples and Market Response

The tariff relief comes amid a broader shift in global trade dynamics. Just a week prior, India and the European Union concluded a free trade agreement that eliminates or significantly reduces tariffs on more than 99 % of traded goods, including seafood — a deal expected to boost Indian exports into the EU.

Market reaction to the US–India tariff reduction has been positive among exporters, though some business groups call for greater clarity on implementation timelines and product-specific duties. Despite relief, concerns remain about policy uncertainty and how quickly Indian shrimp can regain competitive footing in the US market.

Looking Ahead

Analysts say the new tariff regime could stimulate increased shrimp export volumes , enhance competitiveness in North American markets, and encourage investment in processing capacity. However, both trade officials and industry representatives caution that concrete outcomes will depend on broader implementation of the deal and continued cooperation on energy and tariff liberalization.

🇯🇵Japanese​

The trade agreement between the United States and the United States has introduced a tariff reduction of 18% for aquatic products.

ニューデリー／ワシントンDC —Important progress in trade, import of U.S.-made marine products The tax rate of 18% has been lowered, and the previous punitive tariffs have been punished by the export industry.この Measures は、ドナルド・トランプ米大 Commanderとナレンドラ・モディ・インドPrime Ministerの间で knot ばれた, the trade friction between the two countries has been eased, and the cooperation between the two countries has been strengthened.

Trade exchanges linked to the policy and war strategy

On February 2, 2026 , the tariffs introduced by the General Administration of Tolerance will be lowered and the purchase of crude oil produced by Torotron will be suspended. Only the input of the domestic エネルギーproducts of the わりに米国产エネルギーproducts を拡大することにagree したことがconditions であると说べた.トランプの発表によれば、インドは米国产に対する自国の tariff および non-tariff The barrier is closed, and the final trade barrier is completely removed.

"The relationship between the two countries has been strengthened, and the U.S. market has been opened to the public for many products."ルメディアへので书べ、インドがIn the next few years, 500 billion yuan will be equivalent to the purchase of domestic products made of rice.

The prime minister's measures are expressed in gratitude, and tariffs are introduced in a special and intensive manner. Industrial industry "インドのOutput Industry Company " is the industry's largest export company .

The impact of tariffs on exports

The tariffs introduced this time will be lowered, and the trade measures that will introduce penalties in 2025 will be replaced by large ones. In August of the same year, the import of crude oil produced by the U.S. government and Japan's oil and gas industry was cut to 25% of the existing crude oil. Mutual tariffs are added, 25% penalty tariffs are imposed, and many products have a tariff rate of 50% or more .

インド ホワイトシュリンプの export company は, これらの高关The tax is the most important thing in the industry. During the period of high tariffs, the exporting companies of Japan are facing unfavorable positions in the US market, including China, Europe, Japan and other alternative markets.

After the introduction of tariffs in the industry, the export of aquatic products from the United States to Japan has been significantly reduced, and the world market has changed. We are looking forward to the easing of tariffs and the need for a recovery of aquatic products in the U.S. market after a long period of slump.

The ripple effects of world trade and market reactions

This time, the tariffs will be lowered and the world's trade structure will be changed.わずか1 week ago, インドとEuropean Union (EU) , fishery products を contains む trade items with more than 99%について tariffs The cancellation of the free trade agreement has significantly reduced the number of EU exports to Japan since the free trade agreement was concluded.

The import and export tariffs have been lowered due to the goodwill of the export industry's market response, and the industry group has implemented the period during which the item-specific tariffs have been clarified. Relief measures, policy inaccuracies, and domestic product competition in the U.S. market The degree of competitiveness is early, the response is early, and the suspense is still the same.

From now on

アナリストは, the new tariff system and the increase in output volume , and the competition in the North American market The competitiveness is high, the processing capability is high, the investment is low, the possibility is high, and the possibility is high.ただし, trade authorities, industry stakeholders, specific results, overall implementation status of the agreement, and エネルギー分野およびTariff Liberalizationにおける継続’s な Cooperation and Left and Right されるとWarningしている.

Key points:

• U.S. Customs Tariff : Maximum **50%から18% **に影き下げ

• Conditions for the introduction : The import of crude oil produced by the company has been reduced and stopped.

• Japanese products purchase channel : Maximum 500 billion yuan

• Recent India-EU trade agreement : 99% of exports receive preferential treatment

🇨🇳Simplified Chinese (Chinese · Simplified)

The United States reduced tariffs on Indian seafood to 18% in a landmark trade agreement.

New Delhi/Washington, D.C. — In a significant trade development, the United States has reduced tariffs on Indian goods, including white shrimp, to 18% , providing major relief to exporters who had been severely impacted by punitive tariffs. This move stems from an agreement reached between U.S. President Donald Trump and Indian Prime Minister Narendra Modi aimed at easing bilateral trade tensions and strengthening economic cooperation.

Strategic trade adjustments linked to energy policy

On February 2, 2026 , President Trump announced the tariff reduction, stating that the decision was contingent on India agreeing to cease purchasing Russian crude oil and instead increase imports of US energy products. According to Trump's statement, India will also lower tariffs and non-tariff barriers on US goods, with the ultimate goal of achieving zero trade barriers.

Trump stated on social media, "This agreement will strengthen our relationship and bring more Indian products into the U.S. market." He added that India will purchase up to $500 billion worth of U.S. goods over the next few years.

Prime Minister Modi expressed his gratitude for the move, saying that the tariff reduction would be a " major boost for Indian exporters ," especially benefiting labor-intensive industries.

Tariff Background and Its Impact on Shrimp Exports

This tariff reduction marks a significant reversal of the punitive trade measures to be implemented in 2025. In August of the same year, the United States imposed an additional 25% punitive tariff on top of the existing 25% reciprocal tariff on India's continued imports of discounted Russian crude oil , raising tariffs on many products to over 50% .

Indian white shrimp exporters are among the industries hardest hit by high tariffs. During the period of high tariffs, Indian products were at a significant disadvantage in the US market, prompting many exporters to shift their goods to alternative markets such as China, the EU, and Japan .

Industry data shows that after the tariff increase, India's seafood exports to the US declined significantly, leading to changes in global market share. With the tariff easing, the market expects Indian seafood to regain US demand after a prolonged slump.

Global trade impact and market reaction

This tariff reduction comes at a time of global trade restructuring. Just a week earlier, India and the EU reached a free trade agreement , eliminating or significantly reducing tariffs on more than 99% of traded goods , including seafood , which is expected to boost India's exports to Europe.

The market reaction to the US-India tariff reduction was generally positive, but some industry organizations called for further clarification on the implementation timeline and specific product tariff rates. Despite the easing of tensions, policy uncertainty and the ability of Indian white shrimp to quickly regain competitiveness in the US market remain concerns for the industry.

Future Outlook

Analysts believe the new tariff regime could boost shrimp exports , enhance competitiveness in the North American market, and stimulate investment in processing capacity. However, trade officials and industry representatives point out that the actual effect will depend on the overall implementation of the agreement and continued cooperation on energy and tariff liberalization.

Key points:

• US tariffs on Indian goods reduced from a maximum of 50% to 18% .

• Lowering the conditions : India agrees to reduce or halt imports of Russian crude oil.

• India's expected purchases of US goods : up to $500 billion

• Recent EU-India trade agreement : preferential access covering 99% of exports

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