US senator floats bill targeting shrimp imports from Ecuador with 40% tariff

A US senator has introduced legislation that would sharply increase tariffs on shrimp products imported from Ecuador, the largest foreign supplier of shrimp to the US market, to 40%.

Senator Cindy Hyde-Smith, Republican of Mississippi, on Sept. 30 introduced the Ecuador Shrimp Tariff Act, which would establish a phased increase in duties on specified Ecuadorian shrimp and prepared shrimp products, ultimately reaching a 40% tariff rate beginning Jan. 1, 2029. The bill would also impose an additional duty of 10 cents/kilogram on covered shrimp imports and dedicate the proceeds to imported seafood inspections.

The proposal comes as Ecuador has strengthened its position in the US shrimp market, overtaking India as the leading supplier of frozen warmwater shrimp.

Ecuador accounts for more than 40% of US shrimp imports, with roughly 316 million pounds entering the US during the first six months of 2026, according to Hyde-Smith's office. Total US shrimp imports during that period were estimated at about 849 million lb.

"Not much has changed since the federal government found that subsidized Ecuadorian shrimp contributed to material injury to the US shrimp industry, except that Ecuador has only increased its shipments into the American market," Hyde-Smith said in a statement announcing the legislation.

She said the bill would help "level the playing field" for domestic shrimpers and processors.

In addition to higher tariffs, the legislation would strengthen country-of-origin labeling requirements covering certain cooked shrimp and crawfish products and direct the Office of the US Trade Representative to make changes necessary to accommodate the higher duties under US trade commitments.

The measure marks the latest in a series of legislative efforts to support the domestic shrimp sector amid concerns about low-priced imports. Hyde-Smith previously backed legislation targeting Indian shrimp imports and has introduced separate bills calling for tighter inspection requirements on imported shrimp and restrictions on federal support for international institutions financing foreign shrimp farming operations.

Platts, part of S&P Global Energy, assessed Ecuadorean whole shrimp 30-40 count at $4,150/metric ton FCA Guayaquil on Oct. 1, down $40/mt on the day.

Platts assessed peeled, deveined, tail-on 16-20 count shrimp DDP US Northeast at $4.30/pound, assessed peeled, deveined, tail-off 31-40 count shrimp at $3.70/lb, assessed headless, shell-on 21-25 count shrimp at $3.65/lb, assessed headless, shell-on 26-30 count shrimp at $3.54/lb, and assessed head-on, shell-on 30-40 count shrimp at $5.51/kg on the day.