The Telugu Desam Party (TDP) has welcomed the recently announced trade deal between India and the United States, but has voiced concerns regarding its impact on shrimp exports. The agreement, confirmed by U.S. President Donald Trump on Monday, February 2, 2026, will see the U.S. reduce reciprocal tariffs on Indian goods from 25% to 18%.
TDP leaders have stated that the deal is a "game changer" for the Indian economy, and will particularly benefit Andhra Pradesh, specifically its coastal regions. They anticipate that the reduced tariffs will make it easier for aquaculture and seafood products from areas like Kakinada to reach international markets. Andhra Pradesh Chief Minister N Chandrababu Naidu hailed the trade deal as a historic milestone for global stability, adding that the deal will significantly boost India's export competitiveness, creating immense opportunities for youth and farmers, including those in Andhra Pradesh.
The sentiment is echoed by D Dileep, Secretary of the Seafood Exporters Association of India (Andhra Pradesh region), who said that the tariff reduction has come at the right time, stating that the industry would have collapsed if the tariffs had continued for a few more months.
However, some concerns remain within the TDP regarding specific aspects of the deal. Rajya Sabha Member Sana Satish Babu has conveyed his heartfelt congratulations to Prime Minister Modi for achieving "yet another historic international economic victory for India".
Despite the optimism, some industry experts are expressing caution. There are concerns that major importers may have already placed their orders for 2026 by the end of December or early January.
The U.S. is a major market for Indian shrimp, accounting for roughly 48% of India's frozen shrimp exports in the financial year ending March 2025. In that period, India exported frozen shrimp worth USD 500 crore globally. However, in late July 2025, the U.S. imposed additional tariffs on Indian goods, which led to nearly 40% drop in shrimp aquaculture output as many farmers abandoned the sector. Indian shrimp faced taxes as high as 58% in the U.S. market since August of last year. With the new tariff rate, taxes on shrimp are expected to come down to 26%. While this is a relief, competitors like Ecuador still have an advantage with lower taxes.
Concerns have also been raised by TDP MP Beeda Masthan Rao Yadav, who stated that the government should continue its intense dialogue with the U.S. administration for the formal withdrawal of the punitive duty and issuance of an official notification. He pointed out that while President Trump's statement refers to the reciprocal tariff, it does not explicitly confirm the withdrawal of the 25% punitive duty.
The India-US trade deal is expected to enhance export competitiveness across several sectors including engineering goods, pharmaceuticals, textiles, electronics, auto components and processed foods. For the United States, the agreement enhances supply-chain resilience, provides reliable sourcing from a trusted partner and deepens collaboration in education, research and skill development. The agreement is a balanced and forward-looking partnership delivering tangible gains for both economies.
Overall, the TDP views the trade deal as a positive step, but is actively seeking assurances and clarifications to ensure the interests of Andhra Pradesh's shrimp sector are protected.