Vietnam Association of Seafood Exporters and Producers (VASEP) has expressed concern Vietnam’s tuna exports will be impacted if the U.S. decides to drop its tariffs on tuna from China.
U.S. business groups, including the National Retail Federation (NRF) and the National Fisheries Institute (NFI), are pressurizing U.S. President Joe Biden to roll back some of the tariffs levied on Chinese goods during the administration of former U.S. President Donald Trump to help contain record-high inflation. NFI estimates the tariffs have cost U.S. importers USD 136.5 billion (EUR 130.5 billion) since they were implemented in 2018.
China used to be among the top five suppliers of tuna for the U.S., with a specialty in low-priced frozen pre-cooked tuna loin. But the U.S. imposition of taxes on Chinese tuna, beginning at 10 percent in late 2018 and upped to 25 percent in 2019, has encouraged U.S. importers to look for alternative products from other suppliers, including Vietnam. As a result, the value of Vietnam’s tuna sales to the U.S. grew 38 percent year-on-year in 2019, with its processed tuna sales to the U.S. rising 52 percent in 2019.
Vietnam’s sales of tuna to the U.S. dipped in 2020 as a result of the COVID-19 pandemic, but have recovered in 2022. Between January and May 2022, Vietnam was the second-largest supplier of tuna for the U.S., sending USD 251 million (EUR 240 million) worth of product to the U.S. in that timeframe, a year-over-year increase of 102 percent.
VASEP said demand for canned tuna in the U.S. will remain high as its stockpiles are currently at low levels. But it warned soaring inflation in the U.S. is hurting purchasing power, forcing U.S. importers to seek out lower-priced product. A lifting of U.S. tariffs on China would make its tuna more competitive on price and force Vietnam to compete with Thailand, Indonesia, and Ecuador to maintain their U.S. market shares.
Overall, Vietnam saw its tuna exports surge 58.6 percent year-on-year to USD 462 million (EUR 441.6 million) in value between January and May. The E.U. was Vietnam’s second-biggest market, with sales reaching 9.4 percent to USD 67.6 million (EUR 64.6 million) in the first five months of 2022.
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