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Trade Trends News
2025-08-07
·U.S. 19% Tariff May Cause Indonesia's Shrimp Exports to Drop 30% This Year — Farmers' Association
·Farmers Warn Tariffs Threaten Livelihoods of One Million Workers
·Indonesian Shrimp Farmers Target China — the World's Largest Shrimp Importer
·Indonesian Shrimp Industry Delegation Visits China
Over 16,000 kilometers (9,942 miles) from Washington, D.C., at a shrimp farm in Indonesia, President Donald Trump's import tariffs have thrown Denny Leonardo's expansion plans into disarray — and placed Indonesia's shrimp exports under serious pressure.
Leonardo had originally planned to add around 100 new ponds to his 150-pond shrimp farm at the southwestern tip of Java Island this year. But after Trump first threatened tariffs in April, causing U.S. orders to dry up, he was forced to reconsider.
Although the latest 19% tariff agreed between China and Washington in July — down from an initial 32% — is set to take effect this week, Leonardo is now calculating the cost to his business and to the broader shrimp export sector.
"Because the U.S. is putting pressure on Indonesian shrimp exports, everyone is now urgently seeking new diversification opportunities to reduce dependence on the American market," said the 30-year-old shrimp farmer following the July announcement.
The U.S. is Indonesia's largest market for shrimp, accounting for 60% of the country's total shrimp exports, which totaled $1.68 billion last year.
Andy Tamsil, chairman of the Indonesian Shrimp Farmers Association, estimates that the 19% tariff could cause total shrimp exports this year to plunge by 30% compared to 2024, putting the livelihoods of one million workers at risk.
Budi Wibowo, president of the Indonesian Seafood Companies Association, noted that despite the July agreement, most U.S. buyers are still suspending their shrimp purchases. He pointed out that the new tariff puts Indonesia at a disadvantage compared to Ecuador — the world's largest farmed shrimp producer — which faces only a 15% U.S. tariff on its shrimp exports.
Budi said that although China is the world's largest shrimp importer by volume, Indonesian exporters have traditionally preferred the U.S. due to higher prices for shrimp exports.
Prior to the tariffs, China accounted for only about 2% of Indonesia's seafood exports, including shrimp exports.
Now, the industry is working to actively market its shrimp exports to Chinese buyers.
In June, Tamsil led an industry delegation to Guangzhou in southern China to meet with importers, restaurant owners, and agricultural e-commerce platforms. More visits are planned.
“There's enormous opportunity for us in China, which imports around one million tons of shrimp annually,” said Tamsil. “Imagine if we could capture even 20% of that market with our shrimp exports.”
Wibowo added that Indonesia could also diversify its shrimp exports to the Middle East, South Korea, Taiwan, and the European Union — especially as Jakarta is close to signing a free trade agreement with Brussels.
Back at the farm, Leonardo remains confident that the business he inherited from his father can weather the U.S. tariff storm — though its growth may not be as rapid as he once hoped.
“I'm optimistic my company will survive because there's still supply and demand,” said Leonardo. “But I'm not as optimistic about growth in our shrimp exports.”
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