Ocean Trade Turbulence: Seafood Prices on the Rise Amid Global Tensions
A United Nations report warns that global trade tensions, particularly involving U.S. tariffs on seafood, may inflate fish prices. Limited U.S. fish stocks and high tariffs are disrupting traditional trade routes, with countries like Brazil and China redirecting their seafood exports due to tariff pressures.
Global trade tensions are poised to disrupt ocean goods trade, potentially leading to higher seafood prices in the United States, as revealed in a United Nations trade agency report released on Wednesday. U.S. President Donald Trump's administration has levied a 10% tariff on almost all seafood, with China facing a steeper 30% tariff, the U.N. Trade and Development agency found.
The report indicates that rising fish prices are inevitable given the limited capacity for the U.S. to scale up local production. U.S. wild fish stocks suffer from overfishing, and domestic aquaculture production notably requires time to keep up, for example, with salmon farms needing a three-year production cycle.
Data from UNCTAD reflects that the U.S. exports $4.5 billion and imports $16 billion worth of fish annually. Brazil, exporting 55% of its primary fish products to the U.S., along with China, is anticipated to divert its seafood to other markets, as UNCTAD forecasts. Meanwhile, maritime freight transport services face potential declines in demand, as countries adjust their trade routes due to high and variable tariffs, impacting traditional trade flows according to the U.N. report.
(With inputs from agencies.)
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