Thailand's Tuna Sector Resilient Amid U.S. Trade Tariffs

The Department of Fisheries has released analysis of U.S. Section 301 tariffs, emphasizing that Thai tuna exports remain strong while pledging continued shrimp industry development alongside stricter labor protections and certification of forced-labor-free seafood across all supply chains.

The U.S. Trade Representative investigation identified 60 trading partners deemed ineffective in enforcing bans on forced-labor products. According to Thitiporn Loawpraserit, Director-General of the Department of Fisheries, Thailand's core issue is not domestic forced-labor oversight but rather the lack of laws controlling imports of forced-labor goods. The U.S. sources 96% of its seafood imports from the 60 investigated economies, with only 4% from unexamined countries.

The U.S. has proposed two additional tariff rates: 10% for 16 countries including Canada, Ecuador, Indonesia, Mexico, and the United Kingdom that have forced-labor bans or reciprocal trade agreements; and 12.5% for 46 other countries including Thailand.

The Department of Fisheries analyzed impacts on Thailand's two leading seafood exports to the U.S.—tuna and shrimp—which represent 76% of Thai seafood export value. Thailand leads global tuna exports to the U.S. at 29.73% market share ($574 million), and despite the higher 12.5% tariff compared to Ecuador and Indonesia's 10% rate, Thailand's strong processing industry and efficient supply chain are expected to absorb the impact and maintain market share.

For shrimp, Thailand holds only 4.53% of the U.S. market ($302 million) against India's 36.15%, Ecuador's 25.59%, and Indonesia's 14.69%. The 12.5% tariff versus competitors' 10% rate poses a significant price disadvantage, compounded by Ecuador's rising production volumes and lower costs, factors that influence U.S. consumer purchasing decisions.