Brazilian seafood industry reels from fresh US tariffs

A 40-percent U.S. ad-valorem tariff that took effect on August 6 has pushed most Brazilian seafood exports to the United States above the 50 percent duty mark, bringing the sector to a virtual standstill.

AI Brief

Seafood processing plants in Natal, Brazil have drastically reduced operations due to lost US orders caused by tariffs.
Thousands of fishermen are affected, with most of the local fleet idle and incomes falling sharply.
Industry leaders say finding new markets is urgent, or the seafood trade in the region may collapse.

In the port city of Natal, Rio Grande do Norte state of northeast Brazil, processing plants now work at less than half of its previous capacity.

At a processing plant, orders bound for the United States have dried up and the once bustling workshop has become silent.

The 50-year-old plant, once staffed by more than 300 workers, has cut its workforce and left some machines idle.

"This is the workshop where we processed all the seafood bound for the United States. In the past, the catch we unloaded in the morning would be on the shelves in Miami the next day, feeding the U.S. market. We had an incredibly efficient, just-in-time supply chain. But as you can see now, everything has come to a standstill," said Arimar Franca Filho, owner of the plant.

The slump has rippled out to sea.

Roughly 23,000 registered fishermen in Rio Grande do Norte depend on the trade.

Luiz Carlos Silva has fished these waters for 25 years. Now his income has fallen sharply due to the tariff.

"Things are getting tougher and tougher. Our pay consists of a base wage plus a share of the catch. With the boats staying in port, there's no share, just the base wage. That makes life very hard," he complained.

"More than 70 percent of the local fleet, both inshore and offshore vessels, has now been idled. There's really not much we can do: either we find new markets, or our catch simply won't sell," said Filho.