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Photo: VASEP/FIS
Shrimp, Tariffs, and Global Strategy: How Vietnam, India, and Ecuador Are Navigating the U.S. Trade Storm
VIET NAM
Tuesday, April 15, 2025, 07:00 (GMT + 9)
With U.S. tariff shifts disrupting global seafood flows, shrimp-exporting nations are racing to adapt through diplomacy, diversification, and deep restructuring
In the early hours of April 10 (Vietnam time), U.S. President Donald Trump stunned global markets by announcing a 90-day suspension of reciprocal tariffs for countries that do not retaliate against the United States — while simultaneously raising tariffs on Chinese goods to a steep 125%.
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This unexpected move has triggered a flurry of reactions from top shrimp-exporting countries — Vietnam, India, Ecuador, and others — all seeking to recalibrate their strategies amid a swiftly changing trade landscape.
Source: FAO
Vietnam: A Strategic Window with Rising Pressure
According to Ms. Kim Thu, Shrimp Market Expert at the Vietnam Association of Seafood Exporters and Producers (VASEP), countries previously facing tariffs over 10% will now benefit from a temporary reduction to 10% during the 90-day grace period. For Vietnam, this window is both a strategic opportunity and a challenge.
With Chinese shrimp effectively blocked from the U.S., Vietnamese exporters have a rare chance to expand market share — especially by focusing on value-added products and strict origin traceability. However, this comes with intense price competition and increasing scrutiny from U.S. Customs, as concerns grow about Chinese products being relabeled as "Made in Vietnam."
Vietnam's shrimp export
At the same time, China is expected to redirect its shrimp exports to key Vietnamese markets like the EU, Japan, and ASEAN — intensifying competition and squeezing margins across the board.
India: Diversifying Exports, Sharing the Burden
 ndia has responded with cautious optimism. Its Commerce Ministry is analyzing the implications of the new tariffs, acknowledging potential hits to demand but confident in the country’s value-added shrimp capabilities.
Indian exporters report that some U.S. buyers are willing to absorb part of the new tariff costs, signaling continued demand. Meanwhile, India is accelerating efforts to diversify exports beyond the U.S., targeting markets in Europe, Japan, South Korea, China, Russia, and Canada to hedge against future shocks.
Ecuador: Playing the Diplomatic Long Game
Ecuador responded swiftly by announcing a temporary reduction of import tariffs on U.S. shrimp to 0% — a move aimed at maintaining positive trade relations with the U.S.
The tariff cuts apply to a broad range of shrimp products previously subject to 30% duties. This zero-rate policy, which lasts through December 31, 2025, reflects Ecuador’s broader strategy of securing a favorable trade agreement with its largest export partner. Ongoing efforts to strengthen public-private collaboration on tariff and compliance issues are also underway.
Thailand & Indonesia: Seeking Balance Through Policy and Pivoting
Thailand, too, has committed to boosting imports from the U.S. and gradually reducing certain high tariffs and non-tariff barriers. Its Finance Ministry announced intentions to balance trade with the U.S. over the next decade.
Meanwhile, Indonesia is rolling out financial support for affected industries and building a strategy to reorient exports toward Europe as an alternative to reliance on the U.S. and China.
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