How U.S. Tariffs impacting Global Shrimp Export in 2025
The United States implemented a series of reciprocal tariffs on several trading partner countries around the world in April 2025 in the plea of counterbalancing unfair trade practices by them.
Global shrimp export is thought to be heavily affected by the unexpected burden of tariffs on the developing nations that would certainly lead to a devastating situation for the farm-level shrimp producers as well as the shrimp processing industries of those countries.
Tariffs and Trade Barriers: What’s Changing?
The U.S. government has thoroughly investigated the tariff protocols that were used to comply with their global trade partners in previous days. They accused other trading nations of unfair policy about imposing additional tariffs for a long time when the U.S. usually exports goods to their markets.
As a strong response to what it sees as trade imbalances and non-tariff barriers imposed by other countries on American goods, the American authority had taken the decision to impose reciprocal tariffs on exporting goods from several countries, including shrimp.
The Office of the U.S. Trade Representative stated that the average import duty on frozen shrimp could increase from 0% to as much as 10–15%! It actually depends on the origin country and product type.
The big shrimp exporting country to the U.S., like India, exported $5.5 billion at the beginning of Q1 in 2024, which could be the worst blow ever.
How this Affects Shrimp Exports
Pricing Pressure:
A real tough time is waiting for the shrimp exporting countries. All of these developing countries have to absorb the extra cost, which will reduce profit margins significantly both at the exporter level and at the producers’ end. This awkward situation would make their products less competitive in the U.S. market.
Market Diversification:
Countries like India, Vietnam, Thailand, and Bangladesh are heavily depending on the U.S., EU, and Chinese markets for their shrimp to be exported effortlessly. This vulnerability may shift trade volumes and pricing dynamics globally.
Supply Chain Disruptions:
In most cases, frozen seafood industries often deal with tight margins and fixed contracts. The sudden implementation of tariffs can possibly lead to delays in shipments, contract violations, and even order cancellations.
Domestic Impacts in the U.S.:
Instead of protecting the national interest of the country, imposing reciprocal tariffs on shrimp trading could result in an abnormal price hike in the U.S. markets. Because the total shrimp production of the country isn’t sufficient to meet up with the national demands, which is approximately 760,531 MT.
Impacts on Major Exporting Countries
India
India has remained the top shrimp exporter to the U.S. in 2024. Even after a slight decrease of about 0.6% compared to the last year’s export volume, it has shipped 294,333 MT frozen shrimp to the U.S.
The U.S. government has imposed a 26% tariff on the shrimp to be exported there. Indian exporters and shrimp farmers who are currently having an average profit of 10-15% could face a harsh reality in the upcoming days.
Ecuador
Last year, Ecuador exported approximately over 187,000 MT to the U.S. and also saw a significant decline of 9.61% from the year 2023.
The country faced various challenges such as higher input prices, lower profitability, and power outages affecting production, further complicating its export capabilities.
Indonesia
Indonesia exported 134,803 MT of shrimp in 2024 with an 8.61% decrease from the last year. The 32% tariff has subsequently pressurized the Indonesian shrimp farmers and exporters to explore alternative markets and adjust pricing strategies.
Vietnam
Vietnam, one of the most potential shrimp exporting countries of the world. Unlike other shrimp exporting countries, it has incredibly increased its exports by about 13% from the last year, 2023.
This tremendous trend of growth indicates Vietnam’s resilience and adaptability. However, a sudden imposition of a 46% tariff has rattled the frozen shrimp industries. Exporters have already stopped buying raw shrimp from the farmers; that could result in a massive blow for the aquaculture economy of the country.
Thailand
In 2024, Thailand exported 28,154 MT of frozen shrimp to the U.S. markets. Thailand has also been facing a a 37% tariff, which can be a huge barrier in continuing trading of shrimps and other seafood in the U.S.
Bangladesh
According to data from the Bangladesh Frozen Foods Exporters Association (BFFEA), Bangladesh has shipped around 10,000-12,000 MT of shrimp to the U.S. in the year 2024.
The newly imposed 37% tariffs have made Bangladeshi shrimp relatively more expensive in the U.S. market. Although Bangladesh has been exporting a handsome volume of frozen shrimp in the EU markets for a long time, this situation would certainly compel the exporters to seek new markets very shortly.
Industry experts also highlighted that if alternative markets aren’t secured within a short time, the shrimp industry would face a massive downfall. Because higher compliance costs for meeting U.S. standards and excess tariff burdens increase the overall unit price to an unbearable position.
The Bottom Line
In a nutshell, the sudden imposition of reciprocal tariffs by the U.S. has severely changed the overall scenario of the global trades with some of the key players in shrimp export industries.
The U.S. has to increase the domestic production of shrimp, although it seems to be quite a nightmare within a short time. Besides this, a sudden price hike in the shrimp market can demotivate the existing local consumers.
On the other side, exporting nations should explore new markets in the EU, the Middle East, and the Southeast Asian regions to sustain their shrimp business. In addition to this, a gradual increase in domestic consumption of shrimp can be another tricky way to fight the adverse condition arising due to the newly imposed reciprocal tariffs.
