Indian markets fell after the US announced a 25% tariff, raising concerns over trade and economic impact. Higher duties on shrimp exports and potential loss of discounted Russian oil threaten margins, leaving exporters and refiners vulnerable to rising costs.
Indian markets turned bearish today after U.S. President Donald Trump imposed a 25% tariff on India, coupled with an unspecified penalty for its dealings with Russia, including defence and oil imports. The move sparked investor concerns over trade relations and potential economic impact, triggering widespread market sell-offs.
The US remains a key market for Indian shrimp exporters. In the March quarter, Avanti Feeds generated 77% of its revenue from North America, slightly lower than 80% a year earlier. Similarly, Apex Frozen Foods reported that the US contributed 53% of its revenue, highlighting significant dependence on American demand.
India commands nearly 20% of the global shrimp market, with production likely to stay steady at 1.2 million metric tonnes this fiscal. About 48% of its shrimp exports head to the US, leaving the industry heavily reliant on American demand and vulnerable to policy changes, as noted in Avanti Feeds’ annual report.
Indian shrimp exports to the US currently attract a 17.7% duty, including countervailing and anti-dumping charges. With the new hike, the tariff burden will rise to 25%, pressuring exporters’ margins and competitiveness.
Additionally, Indian refiners, both state-owned and private, may face setbacks due to the new tariffs. With nearly 37% of oil imports sourced from Russia at discounted rates, these supplies have been crucial in supporting refining margins. If access to Russian crude is curtailed, import costs are set to rise sharply, significantly squeezing refiners’ profitability and impacting overall industry performance.
Stocks that are in focus after Donald Trump imposed a 25% tariff:
| Company | CMP | Movement |
| Avanti Feeds Ltd | 684.90 | -1.1 |
| Waterbase Ltd | 50.30 | -3 |
| Apex Frozen Foods Ltd | 237.19 | -8 |
| Indian Oil Corporation Ltd | 146.27 | -2.17 |
| Bharat Petroleum Corporation Ltd | 330.15 | -2 |
| Hindustan Petroleum Corporation Ltd | 417.10 | -2.4 |
| Reliance Industries Ltd | 1,395.10 | -1.07 |
Written by Abhishek Singh
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