Indonesia is redirecting shrimp exports to China after new U.S. tariffs of 19% froze orders from its top buyer, risking a 30% drop in sales and one million jobs. The $1.7 billion industry faces steep losses as exporters scramble to find alternative markets.

The United States previously accounted for 60% of Indonesia’s shrimp exports, but the sudden tariff hike in July forced importers to pause shipments. Farmers say new orders have stalled, expansion plans have been shelved, and confidence in the U.S. market has collapsed.

China, the world’s largest shrimp importer, had sourced only 2% of its supply from Indonesia before the tariff decision. Now, Indonesian trade officials are touring southern Chinese cities to meet buyers, restaurant chains, and seafood platforms.

“Imagine if we could take just 20% of China’s import market,” said Andi Tamsil of the Indonesian shrimp farmers’ association, referencing China’s annual imports of one million tonnes. “That would be a massive boost for us.”

Indonesia is also exploring growth in other regions, including the Middle East, Taiwan, South Korea, and the European Union. A free trade agreement with Brussels is reportedly near completion, which industry leaders hope will open new long-term opportunities.

Still, the outlook remains cautious. “The new tariff puts us at a disadvantage compared to exporters like Ecuador, which faces a lower 15% rate,” said Budhi Wibowo, head of Indonesia’s seafood exporters’ association.

West Java shrimp farmer Denny Leonardo said his company was preparing to scale back investment.

“I am optimistic that my company could survive because there will still be supply and demand. But for growth, I am not that optimistic.”

Copied