Tariffs to drive up seafood prices in the US, UN trade agency says
Workers process hake at a Chilean fishing company, in Talcahuano, Chile. - REUTERS
GENEVA: Global trade tensions could disrupt ocean goods trade and will push up the price of seafood in the United States, a major importer of fish, according to a report from the United Nations trade agency published on Wednesday.
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- The US has imposed steep tariffs on seafood, especially from China, which may raise fish prices and disrupt imports.
- Overfishing and long aquaculture cycles limit the US's ability to replace imported seafood quickly.
- Tariffs and rising shipbuilding costs, combined with climate change and biodiversity loss, are reshaping global ocean trade.
"Prices on fish products are likely to rise due to limited capacity to scale up local production," the report found.
Wild fish stocks in the U.S. are limited due to overfishing and it takes time to scale up domestic aquaculture production, the report said. For example, salmon farms have a three-year production cycle.
The U.S. exports $4.5 billion and imports $16 billion worth of fish each year, according to UNCTAD data.
Brazil, which exports 55% of its primary fish products to the U.S., and China, is likely to redirect its seafood to domestic markets or alternative trading partners, UNCTAD predicted.
Some maritime freight transport services may also face weaker demand due to changes in trade routes as countries seek different markets to export their goods.
"Higher or volatile tariffs on ocean goods are likely to disrupt traditional trade flows, affecting both consumers and exporters," the U.N. report found.
Tariffs on steel and aluminium are already driving up shipbuilding costs, as well as fish prices, UNCTAD stated.
The report also found that climate change, overfishing, and biodiversity loss are increasingly threatening global ocean trade.
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