Indonesia is shifting its shrimp export strategy towards China following the imposition of new tariffs by the United States, which have disrupted one of its most lucrative seafood markets.
The Indonesian government and major seafood exporters have begun formal engagement with Chinese importers to secure new trade deals that would cushion the blow from Washington’s latest protectionist move.
The US, citing alleged dumping and subsidy practices, introduced anti-dumping and countervailing duties on Indonesian shrimp exports in July, significantly increasing the cost of the commodity for US buyers.
This has triggered a sharp drop in export volumes and led to concerns among Indonesian producers over excess stock, lost revenue, and long-term market access.
Indonesia is one of the world’s largest shrimp producers, and the US has historically been a top destination for its seafood exports. The new tariffs, which some officials have described as unjustified, are expected to slash export earnings by hundreds of millions of dollars if alternative markets are not secured.
China has emerged as the next best alternative due to its growing appetite for seafood and its existing trade ties with Indonesia. Authorities are now accelerating discussions to streamline health certification processes and customs clearance for shrimp exports to Chinese ports.
Efforts are also underway to improve cold chain logistics and distribution networks to handle increased volumes destined for the Chinese market.
Domestic industry players have urged the government to fast-track negotiations and explore further diversification, including potential deals with South Korea, Japan, and Middle Eastern countries.
While the shift to China offers a lifeline, exporters acknowledge that prices and margins may not match what was previously achieved in the US market.
The trade realignment comes at a time when Indonesia is also investing heavily in shrimp farming modernization, with an aim to double national production by 2027.
Officials view this moment not just as a setback but as an opportunity to recalibrate export dependence and strengthen market resilience.
The reorientation signals a broader trend among emerging market economies to look eastward as trade tensions with Western powers reshape global supply chains. Indonesia’s pivot toward China may also influence future seafood pricing dynamics and bilateral relations in the region.
Written By Ian Maleve
