Global Shrimp Market Reels as U.S. Tariffs Take Effect; Walmart Issues Recall on Frozen Shrimp

Date: August 27, 2025

NEW YORK / BENGALURU - Today marks the commencement of sweeping changes in the international shrimp trade and a significant consumer safety alert in the United States.

U.S. Imposes 50% Tariff on Indian Shrimp Imports At midnight Eastern Time, the United States implemented a 50% import duty on shrimp products originating from India. The measure, announced earlier by the U.S. administration, immediately depressed farm-gate prices in India by nearly 30% as exporters rushed to clear existing stocks, according to trade sources in Hyderabad. Conversely, U.S. importers have passed much of the additional cost on to retailers and restaurants, driving up the price of premium frozen shrimp by approximately 50% over the past week.

Industry analysts warn that U.S. shrimp consumption could contract as wholesalers and foodservice operators seek alternative protein options amid higher retail costs. India, which accounts for roughly 40% of the U.S. shrimp supply, now faces intense pressure to identify new markets or risk severe losses among its farming and processing communities.

Walmart Recalls Frozen Shrimp Over Radioactive Contamination Concerns Concurrently, Walmart has issued a voluntary recall of its Great Value brand frozen, raw shrimp across 13 states after federal authorities detected trace levels of Cesium-137 in one shipment imported from Indonesia. The U.S. Food and Drug Administration (FDA) characterized the contamination risk as “quite low,” yet advised consumers to discard affected products or return them for a full refund. Affected lot codes include 8005540-1, 8005538-1 and 8005539-1, all bearing best-by dates of March 15, 2027. The recall covers Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Missouri, Mississippi, Ohio, Oklahoma, Pennsylvania, Texas and West Virginia.

Market Outlook With tariffs reshaping global shrimp flows and high-profile recalls shaking consumer confidence, the shrimp industry enters a period of heightened volatility. U.S. buyers are already exploring alternative suppliers in Ecuador and Vietnam, while Indian exporters are reportedly in talks to divert shipments to markets in China and Europe. How quickly the sector adapts to these twin shocks will determine shrimp’s availability and price stability in the months ahead.