Maoming, China is the world’s largest tilapia exporter, and workers in this small southern city are greatly impacted by tariffs and the U.S. trade war.
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China exports $425 million worth of tilapia to the U.S. a year, and before the two countries decided to roll back tariffs in May for 90 days, these exports were facing duties of 170%, reports Reuters.
Even though workers have the supply and America has the demand, ballooning trade costs meant a lot of uncertainty for fish farmers and buyers.
Since the recent trade talks in Geneva, Switzerland, the fish trade in this region has gone from “flat to flourishing,” reports China Daily, with prices rising.
But the truce is still fragile. Shaken local producers are reportedly looking to explore alternative markets. "We believe it is a step-by-step process to shake off our dependence on the U.S.," said Cao Luoding, deputy president of Guolian Aquatic Products Co, to the news outlet.
Maoming is the star of the tilapia show
Maoming is massive. The city’s tilapia fish farms alone are one and a half times the size of San Francisco, according to Reuters.
In 2024, China exported 167,000 metric tonnes of tilapia, per the USDA. The exports to the U.S. were 7,400 metric tonnes.
Before the recent pause on tariffs, Maoming fish workers were worried. The peak tilapia stocking season is usually from March through May, and Tilapia prices dropped 17% last month.
"This is the hardest year ever," a worker said to Reuters in April. "Normally, we’d have sold a lot by now. But no one’s buying. Farmers are scared."
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How tariffs could hurt Americans
A slight drop in prices or even a little fluctuation is normal, but the drastic cost changes impact everyone. If fewer Americans buy tilapia, there will be fewer trips for importing and exporting.
That’s fewer boats making the trip, smaller crews managing the loads, and fewer people handling the fish at each destination. With less volume, warehouses won’t need as much space to hold the inventory.
With a massive drop in tilapia exports, American-led teams — from logistics to packaging and retail — could be out of work. Americans are no strangers to drastic inflation hurting income and savings.
However, the more people lose jobs because of tariffs and trade wars between the U.S. and China, the higher the unemployment rate will be.
If more folks lose jobs and access to benefits, health care and savings, some folks may fall behind on mortgage or rent payments, car notes and other bills as less money comes in.
According to a recent Bankrate survey, nearly 3 in 4 Americans are saving less this year for emergency expenses due to inflation/rising prices, elevated interest rates or a change in income or employment. There’s a chance some people could lose their homes or get their cars repossessed if they fall far enough behind on payments.
Many of these economic uncertainties are already causing friction in global trade. But the longer the trade war looms, the more of an impact it could have close to home.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
