What are the economic implications of the U.S. importing massive amounts of shrimp products from other countries to supply more than 90% of its increasing shrimp consumption? It is expected that the imposition of tariffs on U.S. shrimp imports will reduce the volume of imports and raise their prices in the U.S. domestic market.
The U.S. imports massive volumes of mostly farmed fresh and frozen shrimp products from several countries.
Fresh shrimp products include:
- Warm-water, shell-on, fresh, farmed or wild shrimp
- Warm-water, peeled, fresh, farmed or wild shrimp
- Cold-water, shell-on, fresh, wild shrimp
Frozen shrimp products include:
- Warm-water, peeled, frozen, farmed shrimp
- Warm-water, shell-on, frozen, farmed shrimp
- Warm-water, shell-on, frozen, wild shrimp
- Cold-water, shell-on, frozen, wild shrimp
The value and volume of U.S. shrimp imports have been rising from 2016 to 2021. The volume and value of U.S. shrimp imports peaked in 2021 at 1.97 billion pounds, valued at $7.99 billion. After 2021, the volume and value started declining, reaching 1.67 billion pounds, valued at $6.04 billion in 2024.
In 2024, India topped the list for shrimp exporting to the U.S., amounting to 648.89 million pounds, valued at $2.24 billion. Ecuador was second in the list of shrimp exporters to the U.S., reaching 412.35 million pounds, valued at $1.28 billion. Indonesia, Vietnam and Thailand were the third to fifth shrimp exporters to the U.S. The sixth to tenth exporters of shrimp values to the U.S. were Argentina, Mexico, Canada, Peru, and China.
Significant annual revenues from tariffs imposed on shrimp imports started when the US-China trade war started in July 2018. Up to 2024, a 25% tariff rate was calculated for U.S. shrimp imports from China (Fig. 1). In 2024, calculated duties of 5% were also imposed on U.S. shrimp imports from eight other countries. This tariff structure shifted shrimp supplies from high-tariff to low-tariff to no-tariff producing countries.
In 2018, the calculated duties on shrimp imports averaged 0.15%. The peak tariff revenues imposed on shrimp imports in 2019 amounted to $20.01 million at an average tariff rate of 0.33% (Fig. 2). Since 2020, the total tariff revenues and average tariff rates started to decline, reaching $5.11 million, at an average tariff rate of 0.08% in 2024. Even at lower tariff rates on shrimp imports, the U.S. generated significant tariff revenues.
The average import prices ($/lb) are imputed (estimated) from the total values ($) and total volumes (lb) of U.S. shrimp imports since there are no actual import prices that are reported. The average imputed prices of U.S. shrimp imports have fallen from 2016 to 2024. U.S. shrimp imports' nominal imputed average prices fell from $4.28 in 2016 to $3.61 per pound in 2024. The deflated imputed average prices of U.S. shrimp imports fell from $3.88 in 2016 to $2.49 per pound in 2024.
The imputed average prices of U.S. shrimp imports seem to have fallen at higher percentage rates of calculated duties (Fig. 3). The expected decline in imputed average import prices did not occur as a result of the imposition of tariffs on U.S. shrimp imports.
Using an econometric model, deflated imputed prices were significantly lower at higher average percentage rates of calculated duties on U.S. shrimp imports. These results indicate that the tariff burdens on U.S. shrimp imports are absorbed mostly by shrimp exporters and not much by U.S.
Meet the author
Benedict C. Posadas, Ph.D.
Extension Research Professor of Economics
Since 1990, Ben Posadas has consistently developed and maintained the Mississippi State University Coastal Research and Extension Center’s (CREC) extension and research program in economics with... Read more
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