CNA estimates US tariffs cost Ecuadorian shrimp producers $20 million a month

Ecuadorian shrimp exporters are paying a monthly amount of $20 million in reciprocal tariffs, according to estimates from the National Aquaculture Chamber, CNA.

"If maintained throughout the year, tariffs will cost $170 million to the shrimp sector in 2025," CNA president Jose Antonio Camposano said.

On Aug. 7, Ecuador's tariff when exporting to the US was raised to 15% from 10% previously, amid a decision by US President Donald Trump to apply higher import duties on various countries.

Ecuador was less affected than other key shrimp producers. On the same day, new tariffs took effect for major shrimp-exporting countries to the US, with India facing a 25% tariff, Indonesia 19%, and Vietnam 20%. Additionally, India is set to incur further 25% tariffs due to Russian oil purchases, which are set to commence Aug. 27, leading the total tariff on the country to 50%.

After the tariff was announced, Ecuadorian producers saw increased procurement for peeled and deveined shrimp, India's main shrimp export format. However, Ecuador's capacity to process this presentation is limited, and production has already been increasing since April.

"We are already producing P&D at full capacity, so now we will prioritize the highest bidders," an Ecuadorian exporter said.

Even so, the sector has been asking the Ecuadorian government to negotiate a further reduction in its tariff.

"Each day without a deal closed means millions of dollars in losses, risking the competitiveness of the Ecuadorian shrimp sector and threatening more than 300,000 jobs that depend on this industry," CNA said.

Tariffs had made seafood importers hesitant to commit to shrimp purchases, especially peeled and deveined, a product for which India is the main supplier. Some importers have paused procurements while they wait for a definitive deal between the US and India.

"None of our plants wants to negotiate until it becomes clear what is going to happen with Indian tariffs," a US seafood processor said.

However, with negotiations slowing, some find no alternative but to accept higher offers, especially at a time when Ecuadorian shrimp production is seasonally lower.

The Platts, part of S&P Global Energy, PDTO shrimp CIF US, which represents prices of peeled, deveined tail-on shrimp with 16-20 count/lb size, reached $11,464/mt Aug. 15, or $5.20/lb. The assessment increased by 19.5% from the 9,590/mt Aug. 1, affected by the tariff increase and by importers looking for alternative sources of shrimp.

Mexico is also emerging as an alternative shrimp provider.

"We are close to booking orders to the US, after five years with no trades to the country," a Mexican shrimp producer said.

In the year-to-June, the US imported 414,500 mt of shrimp, up by 15% from the same period a year earlier. India was the biggest provider, with 162,267 mt, followed by Ecuador, with 113,422 mt.