Raw shrimp prices have dropped sharply in recent days. — Photo tienphong.vn

HÀ NỘI — The price of raw shrimp in Cà Mau Province has plunged sharply following the United States’ unexpected announcement of a proposed 46 per cent tariff on imports from Việt Nam, sparking serious concern among local shrimp farmers and seafood exporters.

According to the provincial People’s Committee, prices of intensively farmed and whiteleg shrimp have dropped by VNĐ4,000–15,000 (US$0.15-0.57) per kilogramme. The reaction stems from uncertainty among exporters, many of whom have halted quoting prices or paused shipments on existing contracts to the US.

In 2023, Cà Mau’s export turnover to the US reached nearly $71 million, accounting for approximately 5 per cent of the province’s total exports. That figure rose to over $76.7 million in 2024, making up six per cent. Currently, five local firms export to the US with a combined turnover of nearly $13 million.

The sudden stall in exports has caused a ripple effect across the local shrimp market.

Farmers, fearing further price drops if the tariff is implemented, rushed to harvest early, overwhelming processing facilities with raw material. Unable to store or process the surplus, many processors were forced to slash purchase prices, creating a vicious cycle of falling prices, early harvesting and oversupply.

Provincial authorities warned that, without swift regulatory intervention, the shrimp supply chain could face major disruptions, severely affecting both producers and exporters.

Shrimp inventories remain high among processors, who also hold large volumes of already-processed goods awaiting shipment to the US. If the proposed tariff becomes effective, fulfilling existing orders may become unfeasible and exports to the US could be suspended altogether.

However, local leaders stressed that the proposed tariff has yet to take effect and remains under negotiation. In a worst-case scenario, only around 6 per cent of the province’s shrimp output would be impacted and could be redirected to alternative markets.

Authorities urged farmers and businesses to stay calm and avoid reactive decisions. Should exporters successfully diversify markets and negotiations yield positive outcomes, the overall impact could be contained.

The province has proposed that the central government offer timely support, including a financial package for processors to stockpile raw shrimp in case the US enforces the 46 per cent tariff. It also called on the Ministry of Industry and Trade, the Ministry of Agriculture and Environment, and the Việt Nam Association of Seafood Exporters and Producers (VASEP) to step up the dissemination of accurate information to help businesses and producers adjust their operations accordingly.

On April 10, US President Donald Trump announced a suspension of reciprocal tariffs on 75 countries and territories, including Việt Nam. — VNS