FMCG stocks crash up to 20% after Donald Trump announces 45% tariff on shrimp exports to US

The Trump administration has imposed a 26 percent reciprocal tariff on all imports from India, effective April 9, 2025, except for certain sectors like pharmaceuticals and energy. This move is part of U.S. President Donald Trump’s broader trade strategy to address perceived imbalances in global trade and enforce higher tariffs on countries imposing significant barriers to U.S. exports. India was targeted due to its high tariffs on American goods, which is a 52 percent tariff on goods exported from the U.S. 

How Trump Tariffs will affect the Shrimp Market?

According to InCred Equities, India’s annual marine exports total approximately Rs 60,000 crore, with shrimp exports accounting for Rs 50,000 crore of that amount. Meanwhile, the value of shrimp imports in the United States currently stands at around Rs 22,000 crore.

Incred Equities mentioned that the new tariff will stand at 45 percent which includes Anti dumping duty, counter vailing duty and Trump’s new reciprocal tariffs. This would result in halting of shrimp exports to the US due to expensive prices.  

India’s shrimp exports to the US witnessed a 55.4 percent YoY increase in January, rising from 20,055 MT to 31,164 MT. This would be affected now significantly by the reciprocal tariffs imposed by the U.S President.  

The United States is India’s largest shrimp export market, receiving $2.4 billion worth of shrimp out of a total $5.6 billion in exports. India supplies 40 percent of the shrimp consumed in the U.S. market. 

Also read: Pharma stocks jump up to 7% after key acquisition & pharma sector’s exemption from new tariffs

Shrimp Stocks that Plunged up to 20% today:

1. Avanti Feeds Ltd 

The shares of Avanti Feeds Ltd, with a total market capitalization of Rs 10,096.48 crore on Thursday, reached an Intraday low at Rs 720.05 per share, losing around 19.2 percent in today’s trade. As of 2:00 pm, the shares were trading at Rs 741.05 per share, which was 16.8 percent lower than the previous closing of Rs 890.75. According to its investor presentation, 69 percent of  the company’s overall revenue came from the North American Market as of December 2024. 

Avanti Feeds Ltd is a prominent sea food company specializing in the production of shrimp and fish feed. It is one of the largest suppliers of aqua feed in India and has a strong presence in the global seafood market. The company operates state-of-the-art manufacturing facilities and is known for its high-quality, nutritionally balanced feeds.

2. Apex Frozen Foods Ltd 

The shares of Apex Frozen Foods Ltd, with a total market capitalization of Rs 645.47 crore on Thursday, reached an Intraday low at Rs 199 per share, losing around 8 percent in today’s trade. As of 2:00 pm, the shares were trading at Rs 206.55 per share, which was 4.4 percent lower than the previous closing of Rs 216.09. As of December 2024, 52 percent of Apex’s overall revenue came from the United States, according to CNBC. 

Apex Frozen Foods Ltd is a leading seafood processing company based in India, specializing in the export of high-quality marine products, including shrimp and fish. The company is known for its state-of-the-art processing facilities and adherence to international quality standards. Apex Foods serves a global customer base, including markets in the United States, Europe, and Asia.

Written by: Adhvaitha

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