Over 16,000 kilometers away from Washington, D.C., US President Donald Trump’s tariff policy is forcing Indonesia’s shrimp farms to rethink their export strategies. With the US — once the largest buyer — becoming a more difficult market, many Indonesian shrimp producers are seeking new destinations.
At his farm in Indonesia, owner Denny Leonardo had planned to increase the number of ponds from 150 to 250 this year. However, those plans have been put on hold after orders from the US plunged following tariff threats in April.
Although the new 19% tariff — agreed upon with Washington in July — is significantly lower than the initial 32% and officially took effect this week, Leonardo remains concerned about its long-term impact.
“With the US putting pressure on Indonesia’s shrimp exports, everyone wants to find new opportunities to diversify and reduce dependency,” Leonardo said.
Last year, the US accounted for 60% of Indonesia’s total shrimp export value of USD 1.68 billion. According to Andi Tamsil, Chairman of the Indonesian Shrimp Farmers Association, the 19% tariff could cause total exports to drop by 30% in 2025 compared to 2024, threatening the livelihoods of around one million workers.
Budhi Wibowo, Chairman of the Indonesian Seafood Business Association, noted that most US buyers have paused orders even after the July agreement. He added that the new tariff puts Indonesia at a disadvantage compared to Ecuador — the world’s largest farmed shrimp producer — which faces only a 15% tariff.
In the past, Indonesian businesses favored the US for its higher prices, even though China is the world’s largest shrimp importer by volume. Before the tariff hike, China accounted for only about 2% of Indonesia’s seafood exports.
Now, the Indonesian shrimp industry is actively promoting its products in China. In June, Tamsil led a trade delegation to Guangzhou to meet with importers, restaurant owners, and agricultural trade platform operators. More trade promotion trips are in the works.
“China imports around one million tons of shrimp each year. If we can capture just 20% of that market, the potential is enormous,” Tamsil emphasized.
Beyond China, Indonesia is also eyeing the Middle East, South Korea, Taiwan, and the European Union (EU), especially as Jakarta nears the signing of a free trade agreement with Brussels.
For Leonardo, the family business he inherited may weather the tariff storm, but growth will be slower than expected. “I’m confident the company can survive because there’s still supply and demand. But when it comes to growth, I’m not as optimistic as before,” he admitted.
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