On the morning of September 24, 2025, Patna’s Sadaqat Ashram buzzed with anticipation as the Indian National Congress convened its Working Committee (CWC) meeting in Bihar for the first time since Independence. While the gathering was ostensibly about prepping for the state’s upcoming assembly elections, it quickly became clear that the agenda stretched far beyond local politics. At the heart of the discussions: the seismic economic shockwaves rippling through India’s export sector, particularly the shrimp industry, in the wake of a hefty 50% tariff imposed by the United States under former President Donald Trump.
According to Livemint, this sudden tariff spike has left Indian shrimp exporters reeling, upending established trade flows and forcing a rapid search for alternative markets. The US, once the largest importer of Indian shrimp, has become a daunting prospect for exporters. In fiscal year 2025, India shipped $2.68 billion worth of marine products to the US, representing 36% of its total $7.39 billion marine exports. But the new tariffs, introduced on September 23, 2025, have triggered an immediate and dramatic decline in shipments. Between May and August, exports to the US plunged by 43.8%, falling from $289.7 million to just $162.7 million. The pain was especially acute for Vannamei shrimp—the country’s biggest seafood export—which saw shipments to the US drop by a staggering 52.2% to $98.6 million. The fallout has been felt not just in the boardrooms of exporters, but in the coastal processing clusters where thousands depend on the industry for their livelihoods.
“The tariff shock has turned out to be a blessing in disguise for Indian shrimp exporters. China, which was previously the second-largest importer of Indian shrimps after the US, has now emerged as one of the most promising markets. It is likely to become the top importer of Indian shrimps in the near future,” Shaji Baby John, chairman and managing director of Kings Infra Ventures Ltd, told Livemint. China’s robust domestic demand and its reputation as a global seafood processing and re-export powerhouse have made it an attractive destination. Chinese buyers have stepped in with forward contracts, providing a much-needed lifeline for Indian exporters.
But it’s not just China. Indian exporters are now casting their nets wider, eyeing Europe, the UAE, Japan, and South Korea as promising new markets. According to K.N. Raghavan, secretary general of the Seafood Exporters Association of India, the European Union’s recent approval of exports from 102 additional Indian marine establishments is a game-changer. “Amid the tariff shock, exporters are also looking at European Union (EU) markets and counting on the UK FTA (free trade agreement) deal. Additionally, we are focusing on the Russian market, which has significant growth potential,” Raghavan said.
Meanwhile, Singapore has agreed to increase its purchases of Indian farm goods, with seafood likely to be included soon. The UAE, too, is being positioned as an alternative trade hub, not just for seafood but also for textiles—another sector battered by international tariffs. According to a recent report from InCred Equities, while Ecuador remains the global leader in shrimp exports, India’s strength lies in its value-added products, which are particularly favored in the EU. The report underscores the importance of addressing both tariff and non-tariff barriers to unlock the full potential of the European market for Indian exporters.
Yet, the economic turbulence caused by the US tariffs was far from a mere business concern—it quickly took on a political dimension. As the Congress Working Committee gathered in Patna, the impact of the tariffs was front and center on the agenda, alongside more traditional topics like election strategy and the perennial issue of ‘vote chori’ (vote theft). Bihar Pradesh Congress Committee president Rajesh Kumar made it clear that the party was not shying away from addressing international challenges. “At CWC meetings, we pass resolutions after holding deliberations on issues of state, national and international levels. Tomorrow, we will be doing the same. The topics of discussion would include ‘vote chori’ and hefty tariffs imposed on India by Trump,” Kumar said, as reported by PTI.
The gathering drew all the big names: AICC president Mallikarjun Kharge, Rahul Gandhi, general secretaries Deepa Das Munshi, Sayeed Nasir Hussain, Jairam Ramesh, K C Venugopal, and former Lok Sabha speaker Meira Kumar. With the Bihar assembly elections looming in November, the stakes were high. The Congress, seeking to galvanize its base and sharpen its message, hoped the Patna meeting would send a signal of unity and resolve—not just to its own ranks but to the broader opposition coalition, the INDIA bloc.
Not everyone was impressed. Senior BJP leader Shahnawaz Hussain mocked the Congress for shifting its meeting from Delhi to Patna, suggesting it was a desperate ploy ahead of the state polls. “Earlier, CWC meetings took place in Delhi where the Congress has been scoring a zero in elections. It will meet the same fate in the upcoming assembly polls in Bihar,” Hussain quipped. Union minister and LJP(R) chief Chirag Paswan accused the Congress of “pressure tactics ahead of assembly polls in Bihar.” But Rashtriya Janata Dal (RJD) leader Sudhakar Singh was quick to counter, expressing confidence that the CWC meeting would “send across a positive message that will benefit not just the Congress, but the entire INDIA bloc.”
Back in the export sector, the numbers told a story of both pain and resilience. Despite the US setback, India’s marine product exports actually rose 18% year-on-year to $2.60 billion in the first four months of fiscal 2026 (April to July 2025). This growth, driven by surging demand in China and other Asian markets, has helped cushion the blow. Exporters with US contracts are now negotiating with their American buyers to share the tariff burden, while also ramping up domestic sales in major Indian cities like Delhi, Bengaluru, Hyderabad, and Coimbatore.
For many, the crisis has underscored the importance of market diversification and regulatory reform. As InCred Equities noted, “With plant approvals now cleared, the next priority is addressing both tariff and non-tariff barriers that continue to restrict Indian access to the EU market.” The government, for its part, is working to redirect exports to trusted partners such as Singapore and the UAE, and to promote India’s value-added shrimp in regions where it enjoys a competitive edge.
The intersection of global trade policy, domestic politics, and local livelihoods is rarely straightforward. As the Congress party debates its election strategy and the BJP sharpens its attacks, the story of India’s shrimp exporters offers a vivid reminder: in today’s interconnected world, a tariff decision in Washington can reverberate from the fishing villages of Kerala to the political battlegrounds of Bihar. How India’s leaders respond—both in Patna and beyond—may well shape the fortunes of millions in the months to come.
