New tariffs on Chinese goods introduced by the administration of U.S. President Donald Trump are causing havoc for Chinese seafood exporters, according to Landy Chow, the marketing manager of seafood import/export firm Siam Canadian.
Chow, who is based in China, told SeafoodSource that the impact of the new tariffs could be devastating for processors of breaded shrimp products exported from China to the U.S. – a seafood category in which China dominated prior to the imposition of 25 percent tariffs during the first Trump administration.
Those 2018 tariffs cut output from Chinese factories producing these goods by more than half, Chow estimated.
“With a 20 percent additional tariff, things will be even more serious,” he said.
The new tariffs may also force the Chinese tilapia industry – which is already facing other issues domestically such as recovering from a 2024 typhoon and new emissions regulations – to shift strategies, according to Chow.
“Even with the 25 percent duty imposed in 2018, the business survived,” he said. “However, with 20 percent more, the total duty comes to 45 percent. That is simply too high.”
Chow said U.S. importers of tilapia may begin shifting their sourcing to Vietnam, Indonesia, or Thailand, forcing China to adapt in response.
“The problem is that these countries still do not produce significant amounts of tilapia at this moment,” he said. “If the 45 percent tariff stays in place for more than five years, I think it will help Southeast Asia countries to further develop tilapia farming; eventually, they might be able to compete against China.”
Because Southeast Asia is not producing enough tilapia at the moment to meet Chinese production, U.S. importers might import more Southeast Asian pangasius than tilapia to fill the gap, Chow said.
For Chinese producers still looking to ship products to the U.S. despite the obstacles, Chow said they need to get creative …
