Tariff relief brings cheer to AP’s aqua, pharma

Visakhapatnam: The decision of US President Donald Trump to reduce tariffs on Indian exports from 50 per cent to 18 per cent is set to benefit exporters of pharmaceuticals, aquaculture products and food grains, especially rice.

The move comes as a major relief for exporters who had begun scouting for alternative markets as part of diversification, including through a memorandum of understanding on a long-term trade agreement with the European Community, following earlier US curbs. The tariff hike had resulted in an estimated annual export loss of nearly $1 billion for India. Additional duties of 50 per cent, along with countervailing duty (CVD) and anti-dumping duties, had pushed the effective tax burden in the US market to about 58 per cent.

Andhra Pradesh, which has emerged as the aquaculture capital of India due to the widespread adoption of the exotic Vannamei shrimp, was among the worst hit. The sharp rise in tariffs caused severe disruption in shrimp exports and production, leading to a price crash and loss of livelihoods for nearly 6.5 lakh aquafarmers dependent on shrimp farming along the coast.

Industry sources said Andhra Pradesh accounts for over 60 per cent of India’s total aquaculture exports, with frozen shrimp production valued at around Rs.21,000 crore. India’s total seafood exports stood at $7.4 billion in 2024-25, with a target of reaching $12 billion by 2030.

The announcement on progress towards a bilateral India-US trade agreement has brought cheer among the business community in Andhra Pradesh. IT, Electronics and Education Minister Nara Lokesh welcomed the decision, calling it a major achievement for India. He said the tariff reduction would have a direct and positive impact on the State’s economy, benefiting key sectors such as marine seafood exports, MSMEs, agricultural exports and emerging manufacturing hubs through improved market access and global competitiveness.

Agriculture Minister Kinjarapu Atchan Naidu also welcomed the reduction in tariffs on Indian seafood exports from 25 per cent to 18 per cent. “There will be significant relief for seafood exporters in the State, especially the aqua sector . Exports which have declined in the past months due to high tariffs are likely to pick up again. The presence of Indian products in the USA market will increase. Seafood exports, including frozen shrimp, are likely to grow by 10 to 15 percent, improving profit margins in the processing sector. Tariff reduction will be a boon for AP, which is at the top in the aqua sector, income stability and employment opportunities will increase for farmers and fishermen,” said.

Potluri Bhaskara Rao, president of the Andhra Pradesh Chambers of Commerce, said the US decision offers major relief to exporters in sectors such as pharma, rice and aquaculture. He told Bizz Buzz that Andhra Pradesh’s exports to the US are valued between Rs.45,000 crore and Rs.47,000 crore annually. Exporters had struggled to find alternative markets while competing against countries such as Bangladesh, Vietnam, Indonesia and Ecuador, which enjoyed lower tariffs. In some sectors, even China faced lower duties.