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According to the Financial Times, shrimp prices in the U.S. are soaring following the Trump administration’s imposition of hefty tariffs on India, America’s largest shrimp supplier. This marks one of the first food items to starkly reflect the impact of Washington’s new trade policies.
Market data reveals that the average wholesale price of peeled white shrimp has surged to $6.25 per pound, a 21% increase since April. This spike stems from the 25% tariff on Indian shrimp imports implemented last summer, which doubled to 50% in August. Meanwhile, imports from Ecuador, another major supplier, face an average tariff of 21.9%.
The escalating shrimp prices are straining U.S. supply chains and foodservice businesses, particularly as consumers curb spending amid economic slowdown concerns. Restaurants that once leveraged shrimp’s popularity to attract diners are now reevaluating their strategies.
Red Lobster has rebranded its iconic “Endless Shrimp” promotion to “Ultimate SpendLESS Shrimp,” offering three shrimp dishes for $15.99 to cut costs after the original program led to an $11 million loss in Q3 2023, contributing to the company’s bankruptcy. CEO Damola Adamolekun stated the new program is “more sustainable while maintaining the value and flavor customers expect.”
Other chains like Olive Garden, Cheesecake Factory, and Cracker Barrel are also adjusting menus and pricing to cope with higher ingredient costs. Darden Restaurants, Olive Garden’s parent company, noted that limited-time shrimp specials boosted sales last quarter but acknowledged the need to recalibrate costs.
Smaller chains such as Angry Crab Shack stockpiled frozen shrimp before the tariffs took effect to maintain low prices. However, these reserves are dwindling, forcing businesses to consider price hikes, supplier changes, or labor cost cuts. “We’ve delayed raising prices, but shrimp costs are escalating,” said Chairman Andy Diamond.
Food suppliers like HF Foods Group are absorbing 70–80% of the tariff-induced cost increases. “We’re advising clients to reconsider menus, substitute ingredients, and even adjust pricing,” said CEO Felix Lin.
Conversely, U.S. shrimp farmers in Louisiana and Florida view the tariffs as a lifeline, as cheap imports had previously depressed domestic wholesale prices. However, they acknowledge that local production cannot offset the 90% of U.S. shrimp supply currently sourced overseas.
The National Fisheries Institute warns consumers not to expect prolonged shrimp promotions as supply chains and restaurants adapt to the new trade landscape. Circana data shows a 7% decline in shrimp servings at U.S. restaurants over the past year due to higher prices.
In India, N. Chandrababu Naidu, Chief Minister of Andhra Pradesh, reported that the aquaculture sector has suffered approximately $2.8 million in losses due to the tariffs imposed earlier this year. In a letter to Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Fisheries Minister Rajiv Ranjan Singh, Naidu highlighted the significant export impact, estimating total losses at 25,000 crore rupees ($2.8 million) with 50% of export orders canceled. Andhra Pradesh accounts for 80% of India’s shrimp exports.
Vietnam’s shrimp exports to the U.S. in August reached $92.6 million, a 1.4% year-over-year increase, bringing the eight-month total to nearly $500 million.
Source: Financial Times
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