SMC Global Securities Limited

1️⃣India’s agri exports to the US are worth $5B The US is India’s top buyer of farm goods: 🇮🇳 In 2024, India exported $5B worth of products 🇺🇸 The US exported $1.5B worth to India Now, with new tariffs from April 9, exports like shrimp, basmati rice, and buffalo meat face 26%

5️⃣Rice exports to the US may slow—but not vanish India exports 2.5 to 3 lakh tonnes of rice annually to the US. With tariffs rising from 9% to 26%, exporters expect a slowdown. But Vijay Sethia, former chief of the Rice Exporters Association, says: “In the long run, India

2️⃣India still has a tariff edge over many competitors 🔹India: 26% tariff 🔹China: 34% 🔹Vietnam: 46% 🔹Bangladesh: 37% 🔹Thailand: 36% 🔹Indonesia: 32% So while tariffs are rising, India’s relative position stays competitive.

8️⃣India’s tariffs under scrutiny—but reforms are ongoing US Trade reports flag India’s high import duties as a trade barrier. Yet India’s average tariff has already dropped from 17% to 10.66% after the 2025 Union budget. This gives India leverage to negotiate.

6️⃣Other products will face pressure—but not all equally Here’s how other categories are affected: 🔸Dairy (ghee, butter, milk powder): +38.23% 🔸Processed foods, sugar, cocoa: +24.99% 🔸Vegetables, fruits, spices: +5.72% 🔸Edible oils: +10.67% 🔸Alcohol: +122.10% (but low

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3️⃣Seafood, especially shrimp, won’t be hit as hard Shrimp makes up nearly half of India’s seafood exports to the US. Yes, Ecuador faces just a 10% tariff and may gain in the short run. But… ✅ India has better packaging and bulk handling ✅ Shrimp is a small part of US food

4️⃣Short-term impact, but long-term resilience Gulrej Alam, from the Shrimp Feed Manufacturers Association, says: “There will be a short-term re-routing of trade, but in the long term, it won’t be a challenge.” India exports ~4.5 lakh tonnes of shrimp to the US each year. That

7️⃣What can India do? Experts suggest a 'zero-for-zero' tariff plan: ⚖️ India & US can mutually cut tariffs on select goods ⚖️ No need for a full trade deal ⚖️ Helps both sides retain competitiveness without hurting local industries It’s an approach worth exploring.