Trump\’s tariffs sink Brazil\’s fish economy

Brazil’s Tilapia Sector Faces Trump’s Tariffs

Tilapia farms across Brazil have long supplied the U.S. market, but a 50‑percent tariff announced by Washington threatens to halt exports, jeopardising jobs at Fider Pescados, the country’s second‑largest tilapia exporter.

Fider Pescados: Operations and Impact

• 400 fish ponds located along the Rio Grande in São Paulo, the state’s richest province.
• Factory in Rifaina, a town of 4,000 residents where tilapia is processed into fillets.
• 9,600 tonnes of fish produced annually; 40% of this volume previously shipped to the United States.
• Exports have already fallen by a third since the tariff was imposed.
• Company director Juliano Kubitza states that sales to the U.S. will “bottom out” because the 50‑percent tariff is “untenable.”

Production Cycle and Job Concerns

Farm‑grown tilapia undergo an eight‑month growth cycle before reaching supermarket shelves, which contrasts sharply with the 40‑day cycle for chicken and prevents quick recalibration of the schedule.

Kubitza explains that the tilapia industry behaves like a “moving train” that cannot be halted abruptly, and he is racing against time to locate new markets.

Worker Risk and Industry Association Warnings

• Team leader Sergio Secco worries that tariff hikes will “be a hammer blow” to jobs and production.
• Brazilian Fish Industry Association warns that 20,000 employees could be laid off or made redundant.
• Rafaela Ferreira do Nascimento admits she feels “a bit afraid” about potential job loss, but the company cannot let any staff go in the short term.

Searching for New Markets

Once tilapia reaches sufficient weight, it is taken to the factory for processing before shipping fresh or frozen. U.S. buyers mainly purchase fresh tilapia, which carries a higher profit margin.

• Production supervisor Samuel Araujo Carvalho says that the tariff cut will force the company to freeze some products that were intended for fresh sale.
• Kubitza hopes to boost domestic sales, which already account for 50% of total production, but domestic prices are far lower than those intended before the tariff hike.
• A restaurant owner in Rifaina notes that “they are offering us sale prices,” and the company has halted a planned expansion that would have increased production by 35%.

In summary, the U.S. tariff threatens to derail Brazil’s tilapia exports, jeopardizes jobs at Fider Pescados, and forces the company to seek new markets while halting growth plans.