The U.S. government has recently imposed new tariffs on imports from Canada (25%), Mexico (25%), and China (10%), citing economic protectionism and trade imbalances. These tariffs will significantly affect global seafood supply chains, leading to price hikes, disruptions, and new market dynamics.
For Vietnamese seafood exporters, this presents a unique mix of opportunities and challenges. While the tariffs may shift demand towards Vietnamese shrimp, pangasius (basa fish), and tuna, there are also risks, such as increased competition, supply chain constraints, and stricter U.S. regulations.
This document explores the potential impacts, risks, and strategic actions Vietnamese seafood exporters should take to remain competitive.
The seafood industry is heavily reliant on international trade, and the U.S. is one of the world’s largest seafood importers. Many key seafood products, including shrimp, salmon, crab, and lobster, are sourced from Canada, Mexico, and China—all of which are now subject to new tariffs.
• Canada & Mexico – A 25% tariff has been imposed on most imports, with some exemptions for Canadian energy products (10%).
• China – An additional 10% tariff has been placed on a wide range of goods, including seafood.
• Higher Prices for Consumers – U.S. buyers must now pay more for seafood imports from these countries.
• Supply Chain Disruptions – U.S. seafood importers will look for alternative suppliers to maintain stable supply chains.
• Retaliatory Tariffs – Canada and Mexico have announced their own tariffs on U.S. goods, which could further complicate trade relations.
With tariffs making Canadian, Mexican, and Chinese seafood more expensive, U.S. buyers will seek alternatives. Vietnam, one of the world’s top seafood exporters, has a chance to fill this gap.
• Shrimp – The U.S. is the largest importer of shrimp, and Vietnam’s shrimp industry is well-developed.
• Pangasius (Basa Fish) – Vietnam is the world’s leading exporter of pangasius, a low-cost alternative to salmon and whitefish.
• Tuna – With rising costs for Mexican and Chinese tuna, Vietnamese suppliers could expand their U.S. market share.
Despite these opportunities, Vietnamese exporters must also prepare for potential challenges:
With China’s position weakened, other seafood-producing nations like India, Indonesia, and Ecuador will also try to increase their U.S. exports. Vietnamese companies will still face fierce competition.
• Some Vietnamese seafood processors import raw materials from China (such as shrimp larvae and feed).
• If these imports become more expensive, Vietnamese seafood production costs may increase, affecting price competitiveness.
• The U.S. has historically imposed anti-dumping duties on Vietnamese seafood, particularly pangasius and shrimp.
• If the trade war escalates, Vietnam could be targeted next, especially if its exports to the U.S. grow significantly.
• Target U.S. buyers looking for alternatives to China, Canada, and Mexico.
• Enhance branding & market presence through trade shows and certifications.
• Negotiate competitive logistics deals to ensure efficient exports.
• Prepare for stricter inspections and strengthen quality control.
• Monitor U.S. trade policies and navigate anti-dumping regulations.
• Enhance traceability & sustainability to meet U.S. compliance requirements.
• Expand to Europe, Japan, and South Korea to reduce reliance on the U.S. market.
• Increase domestic & ASEAN sales to mitigate potential trade risks.
• Reduce dependence on Chinese raw materials by sourcing from India, Indonesia, or South America.
• Invest in automation & processing technology to improve efficiency.
• Stay updated on U.S. tariff & trade policy adjustments.
• Engage with government & trade associations to advocate for favorable policies.
The U.S. tariffs on Canada, Mexico, and China create a golden opportunity for Vietnam’s seafood industry. However, to seize the moment, Vietnamese exporters must act fast, strengthen compliance, and diversify their markets.
By adapting to shifting global trade dynamics, Vietnam can secure a stronger position as a leading seafood supplier in the U.S. and beyond. ????????
