The U.S.’s reciprocal tariffs on many shrimp-exporting countries are realigning global supply chains and forcing major Asian producers, including Vietnam, Indonesia, and India, to rethink their strategies.

India, the largest shrimp supplier to the U.S., faces the most severe impact from the newly implemented tariffs. The nation is currently subject to a 25 percent reciprocal tariff, which could jump to 50 percent on 27 August under a new executive order from U.S. President Donald Trump. When combined with existing anti-dumping (AD) and countervailing duties (CVD), the total tariff burden could reach as high as 58.26 percent.

Even though India has been able to secure deals with nations like the U.K. to cushion the blow, the spike in U.S. tariffs has still jolted India’s seafood industry, with Seafood Exporters Association of India President Pawan Kumar G describing it as a “doomsday” scenario for the seafood industry, The Economic Times reported.

Others in the industry, like Indian Aquaconnect Founder and CEO Rajamanohar Somasundaram, described the new tariffs on Indian seafood as a “watershed moment,” eroding price competitiveness, squeezing margins, slowing shipments, and putting a USD 2.5 billion (EUR 2.1 billion) market at risk. The CEO, however, told SeafoodSource the tariff shock should spur India’s shrimp industry to rethink its traditionally held export-first mindset and begin tapping the vast domestic market as a proactive strategy – not just a backup plan.

“I believe this is the moment to change not just as a fallback but as a deliberate market strategy to cushion the impact. Though these discussions have mostly stayed within industry circles, mounting pressure may soon push the idea into the mainstream,” Somasundaram said.

He also said he sees huge potential in urban consumers through modern retail, quick-commerce platforms, and value-added ready-to-eat products. He urged the government to mobilize large institutional buyers – from railways and airlines to the armed forces – to absorb surplus and improve the nation’s nutrition. At the same time, he called for rebalancing exports by elevating the E.U., East Asia, and the Middle East from “backup” to “priority” markets, reducing dependence on the U.S.

While India recalibrates, another top Asian shrimp supplier, Indonesia, is reportedly seizing the opportunity to boost exports to the U.S.

Siam Canadian Indonesia General Manager Cicilia Darmali told SeafoodSource that Indonesia’s shrimp exporters have seen a sharp rise in orders from U.S. buyers since Trump announced additional tariffs on India, with many now fully booked through October. With a 19 percent reciprocal tariff and a 3.9 percent anti-dumping duty from the U.S., Indonesian products are now more competitive than other suppliers.

If demand remains strong until the end of this year, prices should stay at a higher level, even as raw material supply is projected to increase between October and December, Darmali said.

The U.S. was the top destination for shrimp from Indonesia in the first half of 2025, as it imported 69,653 metric tons (MT) during the six-month period, which was up 12 percent year over year. With India now facing significantly higher tariffs, Indonesia’s prospects in the U.S. market have suddenly brightened, according to industry blog Shrimp Insights.

“However, much will depend on how the revised tariff structure reshapes buying patterns in the U.S. and whether Indonesia can sustain its momentum in value-added exports to both traditional and emerging markets,” Shrimp Insights said.

Vietnam, meanwhile, finds itself somewhere in the middle.

In addition to the 20 percent reciprocal tariff the U.S. recently levied against the country, many exporters from Vietnam were hit with a preliminary anti-dumping duty of 35.29 percent and a countervailing duty of 2.84 percent, bringing the total tariff load to 58.13 percent for some producers.

Nevertheless, Minh Phu CEO Le Van Quang told SeafoodSource opportunities remain, as Vietnam retains an edge in supplying value-added shrimp to the U.S. market, which not all competitors can match. He also said he was cautiously optimistic that rising prices in the U.S. will translate into higher margins for exporters, motivating them to increase shipments in the future.

“At present, the high U.S. reciprocal tariff means selling to the U.S. is still unprofitable, while sales to other markets yield higher margins. However, U.S. prices are expected to rise sharply in the future, with profits catching up to, and eventually surpassing, those in other markets,” Quang said.

Quang, however, voiced concern over the steep preliminary anti-dumping duty recently imposed on Vietnamese shrimp by the U.S. Department of Commerce (DOC). He said that the DOC’s final ruling scheduled in December 2025 should bring the rate down, noting that the Vietnam Association of Seafood Exporters and Producers has urged the Vietnamese government to step in. In the meantime, he said Minh Phu and other Vietnamese companies are ramping up domestic sales and expanding into alternative markets to offset the impact of U.S. tariffs.

Smaller Asian suppliers, including Thailand, Bangladesh, and Sri Lanka, face reciprocal tariffs of between 19 percent and 20 percent but have avoided anti-dumping and countervailing duties, keeping their costs competitive. 

Elsewhere, several Latin American producers, such as Mexico, Honduras, Guatemala, and Peru, are paying only a 10 percent tariff and are ramping up shipments of headless shell-on shrimp, which is the lowest-taxed category in the U.S. market, according to Shrimp Insights.

Ecuador has come out of the current tariff situation much better than other major players, enjoying the lowest rate among major producers at just 15 percent. As a result, it is rapidly expanding its peeled and value-added output, according to Shrimp Insights.