US Shrimpers Squeezed by Fuel Costs and Tariff Refund Dispute
A shrimper refuels his boat, highlighting rising operational costs.
Key Highlights
American shrimpers face a double hit from rising fuel prices and a tariff refund dispute, impacting profitability and operations.
American shrimpers are struggling with rising diesel costs and tariff refund policies, creating a “double whammy” that’s forcing some to delay trips and repair vessels. Fuel expenses, often over half of operating costs, are soaring amid geopolitical tensions, particularly with uncertainty around the Strait of Hormuz. Meanwhile, a dispute over tariff refunds is adding financial strain.
Joseph Rodriguez, a shrimp boat owner in Bayou La Batre, Alabama, is closely monitoring developments in the Middle East. The potential reopening of the Strait of Hormuz could ease fuel prices, but tensions remain high.
“We definitely depend on the price of fuel, which we can’t control at all,” Rodriguez said.
Fuel prices in the United States continue to climb, with AAA reporting an average diesel cost of $5.46 per gallon, about $2 higher than the previous year.
The Southern Shrimp Alliance (SSA) warns that high fuel costs could limit access to sustainable shrimp stocks off the U.S. coast.
Adding to the pressure, shrimpers are concerned about tariff refunds following a recent Supreme Court ruling that deemed President Trump’s tariffs on U.S. importers unlawful. The U.S. government is refunding $902.7 million in tariff revenue on imported shrimp to foreign companies, a move the SSA argues disproportionately benefits foreign suppliers rather than domestic producers.
Nearly $450 million of the refund money is expected to go to India alone, according to the SSA.
“They ought to put it in some kind of fund to help domestic shrimpers in some sort of way,” Rodriguez said, emphasizing the competition with countries like China.
Rodriguez urges consumers to buy American shrimp, citing concerns about contamination in imported products. He also claims imported shrimp carry a higher risk of contamination from pathogens or veterinary drugs used during production.
“You’d be surprised at some of the high-end restaurants that serve you shrimp, that got more frequent flier miles than I got,” Rodriguez said.