Indian Shrimp Stocks Plunge as Trump Slaps 50% Tariffs on Indian Exports
Shares of leading Indian shrimp exporters fell sharply following President Trump's announcement of a 50% tariff on Indian goods, adding to an existing 25% levy. Avanti Feeds, Apex Frozen Foods, and Waterbase Ltd saw stock declines of 5.30%, 4.00%, and 2.00% respectively. The tariffs, set to take effect in 21 days, are expected to impact seafood, pharmaceuticals, and textiles significantly. India-US trade, valued at over $190 billion, faces uncertainty, with only 20% of India's exports US-bound. India's Ministry of External Affairs called the move 'extremely unfortunate.' Market analysts anticipate continued weakness in export-oriented sectors but note the 21-day window allows for potential negotiations.
*this image is generated using AI for illustrative purposes only.
Shares of India's leading shrimp exporters took a significant hit following U.S. President Donald Trump's announcement of steep tariffs on Indian goods. The move, seen as retaliation for India's oil trade with Russia, sent shockwaves through the Indian export sector, particularly affecting seafood, pharmaceuticals, and textiles.
Market Impact
The announcement triggered a sharp decline in stock prices of major shrimp exporters:
| Company | Stock Movement | Closing Price |
|---|---|---|
| Avanti Feeds | -5.30% | 631.80 |
| Apex Frozen Foods | -4.00% | 218.80 |
| Waterbase Ltd | -2.00% | 48.18 |
Tariff Details
- Trump announced a 50% tariff on Indian goods, building on an earlier 25% levy.
- The new tariffs are set to take effect in 21 days.
- This move is expected to significantly impact various export-oriented sectors in India.
Trade Implications
- While only 20% of India's goods exports are U.S.-bound, certain sectors are likely to face substantial challenges.
- The total trade between India and the United States is valued at over $190 billion.
- Key affected sectors include seafood, pharmaceuticals, and textiles.
Government Response
India's Ministry of External Affairs has called the move "extremely unfortunate," highlighting the potential strain on bilateral relations.
Market Outlook
Market analysts suggest that the 21-day window before the tariffs take effect leaves room for negotiation. However, they anticipate continued weakness in export-oriented sectors in the near term.
The announcement has created uncertainty in the Indian export market, particularly for companies heavily reliant on U.S. trade. As the situation develops, investors and industry stakeholders will be closely monitoring any potential negotiations or policy changes that could mitigate the impact of these tariffs on Indian exports.
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