Shares of shrimp exporters Avanti Feeds and Apex Frozen Foods came under heavy selling pressure in trade on April 3 after US President Donald Trump imposed a 26% reciprocal tariff on Indian goods, part of a broader trade move targeting over 60 nations.
Avanti Feeds tumbled 6.49% to ₹832.90, while Apex Frozen Foods slipped 2.91% to ₹209.80 on the NSE during early trade. The sharp drop in share prices comes amid fears of earnings pressure, given both companies’ substantial revenue dependence on the US market.
As per company filings, Avanti Feeds derived 69% of its total revenue from North America in the December quarter, although this was down from 82% in the same period last year. Apex Frozen Foods, in its latest investor presentation, revealed that 52% of its total revenue was generated from the US.
Trump’s reciprocal tariff policy, unveiled on April 2 during the “Liberation Day” event, aims to counter what he terms unfair tariff barriers imposed on the US. While certain sectors like pharmaceuticals are currently exempt, agriculture and seafood exports—India’s key trade items to the US—are widely believed to be within scope.
The Indian seafood industry has already raised concerns over US duties. In February, exporters requested a waiver on the 30% customs duty imposed by the US on Indian shrimp. The timing of the new tariff announcement is critical, as India recorded a 55.4% year-over-year increase in shrimp exports to the US in January.
In contrast, the Union Budget had earlier reduced the Basic Customs Duty on frozen fish paste and fish hydrolysate inputs, aiming to boost competitiveness. However, the 26% US import tariff may now weigh heavily on exporter profitability.
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