Copyright © HT Digital Streams Limit all rights reserved. Vijay C Roy 3 min Read 01 Aug 2025, 07:33 PM The US service at certain Indian exports has especially hit sectors such as shrimp, basmati rice, fresh fruits, vegetables and frozen foods. (Reuters) Summary US President Donald Trump announced a 25% tariff on Indian goods from August 1. The US service on selected Indian exports has particularly hit sectors such as shrimp, basmati rice, fresh fruits, vegetables and frozen foods. New Delhi: Exporters of India’s food and agricultural products are recalibrating their world strategies after the United States unexpectedly slapped steep rates on a variety of goods, with a blow for the country’s $ 50 billion plus delusions. While players in the industry consider it a short-term setback, many people believe that the disruption can eventually open doors for new markets and re-align worldwide trading flow. “India exports about 2-2.5 Lakh Ton Basmati rice to the US every year. The steep hike in rates surprised the exporters,” said Satish Goel, President, All India Rice Exporters’ Association. Goel added that exporters like him raised the issue with the Ministry of Trade and Industry and investigated alternative destinations, even though buyers in the US hit a break. “Meanwhile, the Basmati exporters are exploring new markets such as Indonesia, where the exposure of non-basmati rice is more,” he added, US President Donald Trump announced a 25% tariff on Indian goods from August 1, citing the country’s high trade barriers and an additional “penalty” for the country’s continued shares of russia. The US service on selected Indian exports has particularly hit sectors such as shrimp, basmati rice, fresh fruits, vegetables and frozen foods. Meanwhile, some exporters say their US buyers are already postponing purchases after the latest tariff announcement by Trump. “The US-based importers have told us to stop any fresh packaging and shipping differently than is already in transport,” said a Basmati rice exporter of Haryana, who spoke under the condition of anonymity. “They told us that they wanted to judge the situation first before receiving a new consignment,” the person added. Meanwhile, the blows are even stricter for seafood exporters, who are now facing a 35%cumulative load, including counter-solid and counter-dumping duties. This puts Indian exporters a disadvantage compared to opponents such as Ecuador, who face only 19% duties. Certainly, shrimp remains one of India’s top export of seafood, with the US the largest market. In FY25, India exported marine products worth more than $ 6 billion, with frozen shrimp responsible for a large share, according to data from the Marine Products Export Development Authority. The increase in tariff of the existing 10% to 25% with effect from 1 August comes in addition to the conflicting duty at 5.77% and counter-dumping duties, which is subject to Seafood exported from India, in the US, says KN Raghavan, Secretary-General, Seafood Exporters Association of India. “Although the increase in tariffs and differential rates applied to different countries created an uneven playing field for seafood exporters from India, the long -standing uncertainty due to the threat of imposing extra duty as a fine contributed to the problems they faced,” he added. Raghavan added that the absence of clarity and certainty regarding the rate of import tax creates an environment that is not conducive to a smooth behavior of trade and trade between countries. Meanwhile, fresh fruits and vegetables exporters are also affecting the impact of US rates. Ekram Husain, Vice President of the Vafa Fresh Greenes and Fruits Exporters Association (Maharashtra), said although this season’s mango shipments have already been sent, the export of grenades and other products may be at risk. “It’s too early to say, but if the exporters don’t find viable, they can look for new areas,” he added. Experts point out that India’s dependence on a handful of export market to the latest US tariff salvo under renewed investigation, which emphasizes the urgent need for market diversification, value adding and resilience. “In response, India must undertake diplomatic negotiations with the US, explore new export markets in Asia, Africa and Latin America and accelerate free trade agreements with other countries,” says Preet Sandhu, founder and managing director, AVPL International, a drone technology and precision agricultural technology firm. She added that the ongoing challenges in the long run can catalyze a transformation to a more competitive, independent and global integrated agricultural economy. MK Dhanuka, chairman, Dhanuka Agritech Ltd, an agricultural chemical company, said the decision to impose a 25% tariff on Indian exports, together with other fines based on the strategic alignment of India, brings a multi-dimensional layer of uncertainty in the agricultural economy of India. “A fall in the earnings of agricultural exports due to excessive rates can weaken the morale of the farmer, increase buy cycles and discourage investment in productivity-enhancing input,” he said. In the long run, it can suffocate innovation in agriculture, when Indian agriculture has to modernize as early as possible to remain competitive worldwide, he added. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. 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