Even with tariff pause, plans to increase costs for shrimp imports give small coastal communities hope

Last year most U.S. shrimpers lost money.
(Adobe Stock photo)

Despite shrimp's jumbo appeal to U.S. consumers, American shrimpers have struggled to compete with imported, farmed shrimp. Tariffs and renewed trade negotiations with foreign shrimp importers may help revive American shrimping.

As this week began, shrimpers in tiny Bayou La Batre, Alabama, celebrated President Trump’s new round of tariffs, which "included countries that export most of shrimp Americans consume," reports Rachel Wolfe of The Wall Street Journal. "That included rates of around 26% on India, 10% on Ecuador, 32% on Indonesia and 46% on Vietnam. . . . More than 90% of the millions of pounds of shrimp consumed annually in the U.S. is imported."

The decline of U.S. shrimping came bit by bit as more imported shrimp entered the U.S. market. "Fishermen unable to sell their shrimp to break even on gas, labor and supplies have had to tie up their boats," Wolfe explains. "Supply shops, seafood processors, marine technicians and others in the industry have suffered, too."

For small coastal communities like Bayou La Batre, the loss of shrimping incomes has "cratered" local economics. Wolfe reports, "Income and sales-tax revenue in Bayou La Batre plummeted around 40% between 2021 and 2024 alone, according to Mayor Henry D. Barnes." Barnes told her, "People were looking to me for answers, and I didn’t have them. The city can’t put tariffs on foreign seafood.”

Over the past 20 years, the wholesale price of shrimp in the U.S. declined, but American shrimpers were still able to eke out a small profit. "In 2021, that changed as import prices dropped sharply, making it much more difficult for domestic shrimpers to turn a profit," Wolfe explains. "In 2023, domestic shrimpers operated at a net 3.7% loss on average."

Although the tariffs may help some shrimpers clear profits again, U.S. levies on marine goods could present new challenges. "Shrimpers rely on imports for a lot of their supplies," Wolfe explains. "Jeremy Zirlott, a commercial shrimper from Bayou La Batre, buys some of the webbing for his nets from India — which runs around $22,000 each year for each of his boats."

Even as Trump set a 90-day pause on the sweeping tariffs, the Southern Shrimp Alliance's response was positive. SSA Executive Director John Williams, echoed the hope some smaller coastal towns now have: "It is encouraging that the Trump Administration’s tariffs have prompted countries to show a new willingness to address trade policies disadvantaging American producers."