The United States’ plan to enforce a 25 per cent tariff on imports from India has sparked worries across Kerala’s export-dependent industries, with seafood, coir, spices, garments, tea and cashew all likely to be affected.
The US is a major market for these commodities, and Kerala ranks among India’s largest contributors, reported Deccan Herald. Industry players warn that the timing could be particularly disruptive, as demand for vegetables and other produce typically rises during the Onam and New Year festive season, fuelled by the Malayali diaspora in the US.
According to industry estimates, about 12 per cent of the cargo shipped through Cochin Port each month heads to the US, predominantly the East Coast.
Port Officials Flag Export Risk
“Around 14,000 TEUs are exported from Kochi monthly, of which about 1,500 TEUs go to the US. Therefore, the recent tariff hike is likely to have an impact here,” said Prakash Iyer, chairman of the Cochin Port Users’ Forum.
Kerala’s key shipments to the US include coir, seafood, rubber products and garments, with tea and cashew exported in smaller volumes. Iyer, who also sits on the executive committee of the Cochin Chamber of Commerce and Industry, noted that some exporters were already seeing reduced orders, hinting at early ripples from the tariff announcement.
Marine and Coir Exports Under Spotlight
The Kerala government’s latest economic review shows that the US was the third-largest buyer of Indian marine products in 2023–24, importing 3.3 lakh metric tonnes. Kerala ranked third by volume and second by value in seafood exports, sending 18,083 metric tonnes to the US during the period.
Coir shipments have also been a key growth driver. In 2023–24, 2,96,137 metric tonnes of coir and coir products left Cochin Port, a 148 per cent jump from the previous year. The US accounted for 25 per cent of the value and 11.5 per cent of the total quantity, making it the second-largest importer of Kerala’s coir goods.
With the 25 per cent tariff now looming, exporters fear a slowdown that could hit both local producers and Kerala’s wider economy.
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