Aug 8, 2025
Emergency credit requested as 50% tariffs threaten 20,000 jobs
Brazil’s seafood industry is facing a major economic challenge after the United States introduced a 50% tariff on most Brazilian exports. This measure puts at risk around $400 million worth of fish exports to the U.S. each year and could severely impact the sector’s future.
Background
The tariffs, announced by U.S. President Donald Trump, exclude certain goods like aircraft and energy products but heavily impact the fish industry. The U.S. market represents around 70% of Brazil's fish exports, making it a critical destination for the sector. In response, the Brazilian Association of Fish Industries (Abipesca) has urgently requested the federal government to establish an emergency credit line of 900 million reais ($165 million) to support the industry.
Market Implications
The tariffs have already led to a "serious working capital crisis" within the industry, with approximately BRL 300 million ($54 million) worth of products now stranded. The domestic market cannot absorb this surplus, particularly for premium products like lobster and tuna, which are tailored for U.S. consumers. The potential impact is significant, with estimates suggesting up to 20,000 jobs could be at risk if no immediate action is taken.
Industry Response
Industry leaders, such as Arimar França Filho from a fishing union in Rio Grande do Norte, have expressed deep concerns about the viability of their businesses. "This situation renders our business unviable" he stated, highlighting the urgent need for governmental intervention. Furthermore, the Goiás state government has proactively announced a local emergency credit line to support exporters, demonstrating regional efforts to mitigate the crisis.
Future Outlook
The industry is also pushing for renewed negotiations to reopen the European market, which has been closed to Brazilian fish exports since 2017. Without alternative markets or financial support, the sector faces an uncertain future, with potential job losses and production halts looming.