Marine exports likely to hit by 50% US tariff: Commerce Ministry

The Ministry of Commerce and Industry on Monday has told Parliament’s Public Accounts Committee (PAC) that India’s marine exports are likely to be “negatively” impacted by the 50% tariff imposed by the United States, which places Indian exporters at a disadvantage compared to competitors like Ecuador that face lower tariff barriers.According to information,Special Secretary (Commerce) Rajesh Agarwal told the panel, chaired by Congress MP KC Venugopal, that Indian exporters “could lose ground in this vital sector” unless a bilateral trade deal with the US is reached to lower tariffs.He explained that while the “overall impact” of US tariffs on Indian industry is likely to be “limited” in the immediate term particularly in pharmaceuticals—the challenge is greater for marine exports, especially fish. Marine exporters face a 50% tariff, significantly higher than that levied on competing countries.Agarwal said India is pursuing diversification of export markets alongside continuing negotiations with the US. He expressed optimism about reaching an agreement that could ease tariff pressures. He also highlighted the role of recently concluded and upcoming Free Trade Agreements (FTAs) in creating new opportunities for Indian exporters.
The FTA with the European Free Trade Association (Switzerland, Iceland, Norway and Liechtenstein) provides tariff reductions of 8–12% on marine exports, while the FTA with the United Kingdom, expected to come into effect early next year, will eliminate 8–12% duty on marine exports, opening access to the UK’s £5 billion marine import market.On pharmaceuticals, Agarwal noted that India’s exports to the US largely consist of generic formulations rather than patented or branded drugs. Since the tariff applies equally to China, India does not face a relative disadvantage in this sector. However, he cautioned that in the long term, high tariffs erode competitiveness, dampen export growth, and complicate trade negotiations.He asserted that the government’s approach remains focused on safeguarding domestic sectors such as agriculture and other sensitive industries, while also working to expand export opportunities for Indian pharmaceuticals, marine products, and other industries.

(Business Correspondent)