Seafood exporters in Thoothukudi are facing a major crisis after the United States imposed a steep 50% tariff on Indian goods, leading to large-scale cancellations of consignments already in transit. Over 1,000 tonnes of seafood worth nearly ₹100 crore — including vannamei shrimp, squid, and octopus — are currently stranded at sea, with buyers in the US refusing to accept shipments.
Shrimp, which accounts for nearly 85% of Thoothukudi’s seafood exports, has been hit the hardest. Exporters say they had entered into agreements when tariffs stood at 10%, but the sudden hike has left them exposed to heavy losses. On top of the 50% tariff, shrimp consignments also attract an 8.5% duty, making exports virtually unviable.
“Buyers want exporters to bear the tariff hike or take back the consignments. Some are even threatening to return shipments already on their way to New York and Los Angeles,” said Selwin Prabhu, president of the Seafood Exporters Association of India (SEAI) – Tamil Nadu region.
With shipping times averaging 45 days, exporters who dispatched goods weeks earlier now face the risk of rejected cargo. An exporter cited by The New Indian Express said his buyer had already refused to accept five to six containers carrying nearly 100 tonnes of seafood expected to land in New York next week.
Industry stakeholders warn that if the tariff situation persists, it could trigger massive job losses in Thoothukudi and beyond, undermining one of India’s most vital seafood export hubs.