This price increase has directly impacted restaurants and consumers
President Donald Trump’s tariff policy has started impacting shrimp prices in the US market, with a reported increase of 15-20 per cent. India’s share of supply to the US shrimp market is nearly 45 per cent at a value of around $6 billion annually.
With the Indian shrimp facing a 50 per cent tariff, the US wholesale prices for popular white shrimp have risen to $6.25 per pound — a 21 per cent increase since April, said Shaji Baby John, Chairman and Managing Director of Kings Infra, a leading seafood exporter.
This increase, he said, has directly impacted restaurants and consumers, forcing chains like Red Lobster to restructure its “Endless Shrimp” promotion into a cost-effective version, offering three shrimp dishes for $15.99.
Even with these adjustments, shrimp servings in restaurants have already dropped by 7 per cent over the past year, reflecting broader acceptance of the new pricing reality, he said.
Indian shrimp producers have been consistent in their stand that the duty should be borne by the buyer in the US. This is reflected in the increase in price in the US domestic market, said K N Raghavan, secretary general of Seafood Exporters Association of India.
Street sales affected
“India is the largest supplier of shrimps to the US. We have reached this position due to consistency maintained in quality of the produce. The high tariffs will make shrimps more expensive for domestic consumers, forcing them to pay more,” he said.
“We were supplying to all three segments in the US market — restaurant chains, supermarkets and street sales. After imposition of high tariffs on import of shrimps, street sales segment which is highly price sensitive has come down to close to zero. There are still some sales, at lower volumes to other two segments,” he added.
While American restaurants and consumers grapple with higher costs, India stands at a unique crossroads. The disruption in global seafood supply chains presents a strategic opportunity for Indian companies to not just expand exports but to establish themselves as a global powerhouse in shrimp production and trade, Shaji Baby John said.
The future of global seafood trade lies in value-added products. International buyers are increasingly willing to pay premium prices for convenience, sustainability and quality assurance.
Indian exporters can tap into this by offering frozen, ready-to-cook and sustainably certified shrimp under recognisable global brands. Such an approach elevates India’s presence in international markets and strengthens long-term contracts with major retailers and food service chains, he said.
Published on October 7, 2025