Shares of Avanti Feeds and Apex Frozen Foods declined by 7%-19% during Thursday’s trading session following US President Donald Trump’s announcement of reciprocal tariffs on multiple countries, including India. These companies are notably heavily reliant on exports to the US, with a large portion of their revenues coming from the American market. 

Significantly, the US is the largest market, accounting for $2.4 billion of the $5.6 billion in shrimp exported from India. Indian shrimp represent 40% of the market share in the US. A substantial portion of Indian shrimp heading to the US is processed in various Latin American countries, as reported by Moneycontrol.

During his speech last night, Trump presented a chart detailing the tariff rates the US will impose on various nations. In relation to India, the chart indicated that the country imposed a 52% tariff on US goods, citing “currency manipulation and trade barriers,” and the US would now apply “discounted reciprocal tariffs” of 26% on India.

According to a report by CNBC TV18, Avanti Feeds generated 69% of its total revenue from the North American market in the December quarter, a decrease from 82% in the same quarter the previous year. In its investor presentation for the December quarter, Apex Frozen Foods revealed that 52% of its total revenue was derived from the United States.

In a recent note, InCred Equities mentioned that the newly imposed 45% tariff (which includes Anti-Dumping Duty, Countervailing Duty, and tariffs initiated by Trump) will significantly increase the cost of Indian shrimp in the US, potentially leading to a halt in supplies. Competing nations such as Ecuador, Vietnam, and Indonesia will not gain any advantages, resulting in a cessation of shrimp exports to the US. 

Indian shrimp exporters will begin to explore other markets, such as China, Europe, and the Middle East, to compensate for the downturn in the US market. Supermarkets in the US are likely to run out of supplies within the next 24 hours, which will prompt a reevaluation of food prices. These prices cannot remain once the supermarkets deplete their inventories. 

The tariff components include an Anti-Dumping Duty (ADD) of approximately 2% – 4%, a Countervailing Duty (CVD) of about 5.8%, a universal baseline tariff of 10%, and a reciprocal tariff of 26%, totaling 45%.