Seafood Exports Caught In Tariff Net

Good Morning. When one thinks about seafood, geopolitics doesn't really come to mind. But right now, the harmless shrimp is also caught in a tariff war between the US and India. President Donald Trump's tariffs could put India's seafood exporters in choppy waters, as the US is India's biggest export market.

In other news, amid social media uproar, the government has admitted that vehicles have to change parts because of ethanol blending. Meanwhile, in today’s Build On Blockchain Vietnam’s national blockchain for identity and records has lessons for Aadhaar.

CORE CONVERSATION

'Govt Hand-Holding Needed': Seafood Export Chief As India Risks Losing Export Edge To US

What?

Among the industries that could be hit by US president Donald Trump’s tariffs is India’s seafood industry. India is among the top five seafood exporting nations in the world, and its biggest customer is the United States.

Representatives of the industry are already in touch with the government and are looking to them for solutions, said Pawan Kumar, the president of the Seafood Exporters Association.

Given that much of India’s Rs 60,000 crore industry exports to the US, if the tariffs are not reduced, businesses would be affected.

More than half of Indian seafood exports go to the United States. Hence, the industry makes for a good case study of what smaller enterprises are going through right now, particularly in the export space.

Why It Matters

The current 25% tariff now imposed on Indian exports will make life tough for Indian exporters of seafood, divided between the western and eastern coasts of India.

“The total tariff and duties together will end up paying about 35% today. Of course, we have one more rider which comes with the tariffs, that is the penalty. We are not sure how the penalty is going to come out in the future, as and when it is levied,” Kumar told The Core Report.

Ecuador is India’s nearest competitor when it comes to seafood imports to the US, and some players could definitely switch. While retail buyers cannot afford to pass on the price increase to their customers, bigger buyers like Walmart have some cushioning.

“Ecuador, which is our biggest competitor, will pay about 19% today, and we are somewhere close to 33%, 34% now,” Kumar said.

The Future

The industry's troubles are symptomatic of what exporters in general are grappling with today, regardless of what product they're exporting and what could sometimes work in their favour.

Many of these exporters have decades-long relationships with their importer counterparts in countries like the US, and that obviously helps in times like this.

“We need to find a solution slowly so that the trade at large is not impacted. So we gave a few suggestions to the government to have a look at those solutions and say if you can do a little bit of hand-holding in such a way that we can tide over the crisis,” Kumar said.

Kumar also delved into the details of the sectors in the US that import seafood from India, what kinds of seafood are exported, where they come from and what the next few months will look like.

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BUILD ON BLOCKCHAIN

Vietnam’s Blockchain ID Could Guide Aadhaar On How to Stop Oversharing

What?

For Indians, Aadhaar has been both a blessing and a bit of a headache. On paper, it’s brilliant: a universal ID that works across the country, helps people get subsidies, open bank accounts, access government schemes, and even get admission to schools and colleges.

And as more services pile onto it, a question keeps coming up: is Aadhaar doing too much, without giving us enough control?

Turns out, halfway across Asia, Vietnam is trying something unique with its own national identity infrastructure, and it might have a few lessons for us.

On July 25, Hanoi launched something called NDAChain, a national blockchain platform designed to support everything — from digital identity and electronic signatures to supply chain tracking and health records.

Lessons For India

Aadhaar was designed as a simple ID for Indians. But over the years, we have started using it for things it wasn’t built for: verifying transactions, linking bank accounts, tracking subsidies, and so on.

While it works well for all these services, it also raises serious concerns around surveillance, data leaks, and a lack of consent.

We already have a sophisticated digital public infrastructure in Aadhaar, DigiLocker, UPI, and more. What’s missing is an element that preserves privacy and verifies identity without exposing a user’s credentials.

To build in the privacy element in Aadhaar, India, like Vietnam, could use a permission-based blockchain where only selected participants are allowed to join the network.

This series is brought to you in partnership with Algorand. 

CORE NUMBER

60.5

That’s the jump India’s Services PMI made in July, rising to an 11-month high from 60.4 in June. Growth was driven by strong ad campaigns, new clients, and robust export orders from the US, Europe, UAE, Canada and Asia.

🛑 Hiring slows: Despite demand, job growth was the weakest in over a year, with <2% firms adding staff.

💸 Price pinch: Input and output costs rose faster, led by food, freight, and wage pressures.

🏭 Manufacturing hits 16-month high of 59.1.

🧮 Composite PMI rose to 61.1 — fastest since April 2024, but optimism cooled.

FROM THE PERIPHERY

India Counters US Pressure: Minister of State for Commerce and Industry of India Jitin Prasada, in a written reply to the Lok Sabha on Tuesday, informed Parliament that the US rejected its World Trade Organisation (WTO) consultation request on steel and aluminium tariffs made on May 12, citing national security. But India views them as safeguard measures, which should follow WTO norms. Prasada said India reserves the right to impose reciprocal trade restrictions in response.

Flashpoint: Prasada’s reply comes as the tariff discussion has been high on the agenda in the Parliament. In a rare moment, both the ruling party and opposition appear united, especially after the Ministry of External Affairs strongly rebutted recent US allegations that India is financing Russia’s war through oil purchases, asserting India's sovereign right to make energy decisions.

Fast Facts: Bilateral Trade Agreement continues with five rounds completed so far, to expand trade and investment. India is protecting sensitive sectors like agriculture during talks. No trade curbs announced on Turkey or Azerbaijan, the minister clarified. However, the import from Turkey has declined from USD 3.78 billion in 2023-24 to USD 2.99 billion in 2024-25.

Jane Street Tax Probe: India’s tax authorities are probing whether US-based trading firm Jane Street used its Singapore arm to route profits and evade taxes on derivative trades, Reuters reported. This follows the market regulator Securities and Exchange Board of India’s (SEBI’s) temporary ban alleging the firm manipulated stock indexes.

Fast Facts: Tax officials are examining whether Jane Street violated the General Anti-Avoidance Rules (GAAR) by exploiting the India-Singapore Double Taxation Avoidance Agreement (DTAA). Jane Street reportedly made over $4 billion in India from January 2023 to May 2025, mostly via overseas entities.

What's Next? Searches at its Indian offices began last week, with officials citing non-cooperation from staff. Jane Street has denied SEBI’s claims but hasn’t commented on the tax probe.

Govt Admits Ethanol Forcing Vehicle Upgrades. The Petroleum Ministry issued a clarification after viral posts claimed E20 petrol (petrol with 20% ethanol) damages engines and reduces mileage. The Ministry denied this, stating newer vehicles are E20-compliant, and older ones may need minor rubber part replacements after 20,000–30,000 km. 

By the Numbers: The ministry said a 1–6% mileage drop was found in tests, but no engine issues were reported. 

The Twist: But many users don’t believe it. A survey by LocalCircles, a social media platform to increase citizen engagement with governance, shows two-thirds of petrol vehicle owners oppose the E20 mandate, with some reporting over 20% mileage loss. Critics accuse the government of downplaying real-world costs and demand more options or a slower rollout of the ethanol blend.

😩 UGHH

Want to Travel to the US? Pay 15,000 dollars! The US could ask for a bond worth up to $15,000 if you want to apply for a tourist or a visitor visa, according to a government notice. The bond could range from $5,000 to $15,000. Consular officers will have the power to decide the exact number; it will be based on how many people from your country overstay their visas. Travellers will get these bonds back once they depart the country. 

Setting: In his previous term, Trump tried to impose a similar rule, but it fell through because of pandemic travel restrictions. This latest move is part of a series of actions by the Trump administration to crack down on undocumented immigration, which Trump claims is stealing jobs from Americans. Since he took power in January, the US has deported 1700 Indians, according to India’s Ministry of External Affairs. Most deportees are from Punjab, followed by Haryana, Gujarat and Jammu and Kashmir. 

Critical Moment: The US has also been denying student visas. First, US embassies worldwide paused consular appointments at a key time. Now, students say that they’re getting rejected based on social media posts and likes from years ago. They’re also finding it challenging to get appointments because of the backlog. 

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PODCAST

On Episode 647 of The Core Report, financial journalist Govindraj Ethiraj talks to Moses Harding John, President & CEO at IndusInd International Holdings Limited, Mauritius as well as Chirag Doshi, Executive Director, LGT Wealth India.

• Indian markets have a bigger, earnings challenge

• How Wall Street’s big brokerages are projecting a 15% fall in S&P500.

• The rupee is close to its record lows, what is keeping it there, despite the dollar’s weakness.

• The Federal Reserve might actually want to cut rates, what does that mean for India and capital flows?

• SAP Labs to add 15,000 fresh jobs in Bangalore with AI focus.

• How China’s rare earth freeze is hurting America’s defence industry.

👥 THE TEAM

✍️ Zinal Dedhia, Kudrat Wadhwa | ✂️ Rohini Chatterji | 🎧 Joshua Thomas