At the beginning of the new year, the tariff rise in China's imported shrimp market attracts attention

At the beginning of the new year, China's shrimp import market presents a complex and subtle situation.  Although the price of Ecuadorian shrimp, the main imported shrimp species on the market, did not fluctuate significantly during the New Year holiday, the tariff increase became a big stone for importers. 

Since January 1,2025, China's tariff on imported frozen warm water shrimp (HS 03061790) has been raised to 5% from the provisional tariff rate of the previous year. This change has immediately aroused widespread concern in the industry.  For Ecuadorian shrimp in particular, tariffs were raised from 2 per cent to 4 per cent in 2025, despite the entry into force of the China FTA in May 2024 and plans to gradually reduce tariffs to zero over five years.  At the same time, Indian shrimp, which benefited from the Asia-Pacific trade agreement, also faced a tariff increase from 2 per cent to 2.5 per cent.  In contrast, shrimp imports from ASEAN countries, Peru and Honduras enjoy a 0% tariff. 

The increase in tariffs has undoubtedly increased the cost pressure on importers.  For a container worth Rmb1m, for example, a 2 per cent increase in tariffs means an increase of Rmb20, 000 in costs.  This is undoubtedly a big challenge for those businesses that rely on imported shrimp to meet market demand.  They worry that the increased costs will eventually be passed on to consumers, causing higher prices for imported shrimp, which in turn will affect sales. 

 It is worth noting, however, that despite the tariff increase, Ecuadorian shrimp prices on China wholesale markets did not fluctuate significantly at the start of the new year.  According to data from the frozen seafood trading platform, the wholesale price of Ecuadorian shrimp for a brand in Tianjin Port was consistent with that at the end of last year.  This stable price trend has eased the anxiety of importers to a certain extent. 

But the challenge for importers goes far beyond that.  Changes in market demand have also brought new pressures on them.  Since mid-December, the price of containers to China, which they bought at a premium in October, has fallen.  In addition, prices for Ecuadorian shrimp have fallen, further indicating that China demand for purchases is weakening.  Prices for imported shrimp are likely to fall further in the coming months.