05 Apr 2025

US Tariffs and Their Impact on India’s Poultry Industry

The recent imposition of 27% reciprocal tariffs by the United States on Indian goods has sparked concerns across multiple sectors. While India’s poultry industry is not a major exporter to the US, the broader trade dynamics and ongoing negotiations between the two nations could have indirect consequences for Indian poultry farmers and businesses. 

The recent imposition of 27% reciprocal tariffs by the United States on Indian goods has sparked concerns across multiple sectors. While India’s poultry industry is not a major exporter to the US, the broader trade dynamics and ongoing negotiations between the two nations could have indirect consequences for Indian poultry farmers and businesses. 

What will be the direct and indirect effects of US trade policies on India’s poultry sector, market access demands, domestic protections, and long-term risks for local producers?

Tariffs

Limited Direct Impact on Indian Poultry Exports 

India’s poultry exports to the US are negligible, meaning the new tariffs do not immediately threaten outbound shipments. The US primarily exports poultry to India rather than importing from it.

US Pressure to Open India’s Poultry Market

The US has long pushed India to reduce import duties on American poultry products. 

Key Developments:

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Why Does the US Want More Access?

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India’s Protective Measures for Domestic Poultry

To shield its small-scale poultry farmers, India maintains high import tariffs (up to 100%) on foreign poultry.

Why India Resists US Pressure

Livelihood Protection:

Food Security:

Disease Concerns:

Current Market Structure:

Long-Term Risks for India’s Poultry Sector

If India further reduces tariffs under US pressure, several risks emerge: 

Threat to Small Farmers 

Shift in Market Dynamics

Trade-Offs in Negotiations 

A Delicate Balancing Act

While the 27% US tariff does not directly hurt India’s poultry exports, the broader trade war highlights deeper tensions. The US wants greater market access, but India must protect its farmers from unfair competition.

Key Takeaways

Tariffs

For now, the domestic poultry sector remains stable, but policymakers must strategize carefully to avoid long-term damage to millions of livelihoods. 

Sources: Available upon request

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