Leaders of Brazil's aquaculture industry have warned that the U.S. decision to impose 50 percent import tariffs on all Brazilian exports would severely impact the country's seafood sector.
U.S. President Donald Trump's recent announcement of 50-percent tariffs on Brazilian goods, effective Aug 1, has sparked concerns across multiple industries in Brazil. In an interview with China Media Group (CMG), Cadu Villaca, president of Brazil's National Fishing and Aquaculture Collective (CONEPE), expounded on the risks the industry is facing under the U.S. tariff pressure.
Villaca explained that Brazil's sea bream, lobster, and other seafood products are primarily exported to the U.S., with nearly 70 percent of farmed and wild-caught lobsters destined for the American market. The proposed 50-percent tariff would significantly disrupt the entire fishing and aquaculture supply chain.
"The development of many products -- even entire supply chains -- has factored in the U.S. market. No industry has sufficient profit margins to absorb tariffs so high. U.S. importers will inevitably pass the tariff costs onto Brazilian producers, who are already facing rising expenses for raw materials and shipping," said Villaca.
Brazil's seafood sector employs over a million people in farming, fishing, and export-related operations. The tariffs could lead to reduced orders and price pressures for Brazilian exporters. Villaca noted that plummeting profits have already made production unsustainable, with some exporters considering halting operations.
"About a week ago, a company was selling sea bream at 40 reais (about 7.19 U.S dollars) per kilogram. Catching one ton would bring in 40,000 reais (about 7,193 U.S dollars) . Now, the same company faces uncertainty as buyers are only willing to pay 26 reais (about 4.68 U.S dollars) per kilogram -- a massive loss. With profits plummeting, production has become unsustainable," he said.
The industry expert called on the Brazilian government to provide special credit support to help the industry weather the crisis. He expressed long-term concerns, warning that the tariff's effects could persist for years.
U.S. additional tariffs to severely impact Brazil's aquaculture industry: expert
