India cuts tariffs, Ecuador's white shrimp lose price advantage, value-added processing industry growth may slow down.

In November 2025, Ecuador exported 20,470 tons of shrimp products to the United States, a significant year-on-year increase of 53%, with an export value of $159 million, a year-on-year increase of 62%, making it the largest shrimp import supplier to the United States. India's export volume decreased by 37% year-on-year to 17,116 tons, with an export value falling by 30% to $154 million. When India's tariff was raised to 50%, Ecuadorian producers maintained high prices while their competitors faltered, drawing criticism from many U.S. importers. The United States has not yet officially announced the effective date of the tariff reduction, but Gary Morrison, a senior analyst at UCN, predicts that competition in the North American market will become even more intense. "Starting from October last year, Ecuadorian shrimp, which had a tariff of only 15%, replaced India as the largest supply source in the United States. It is clear that this tariff reduction will once again change the trade landscape. Indian white shrimp will return to the U.S. market, reclaiming lost market share," Morrison said. In the U.S. market, for example, value-added products such as peeled and deveined (P&D tail-on) shrimp, Asian white shrimp usually enjoy some premium prices, while Latin American producers have more pricing advantages. Under full factory production, they are reluctant to lower prices. Now that India has returned to the arena with an 18% tariff, it will exert strong pressure on those previously hardline Ecuadorian producers. "As the tariff gap narrows, U.S. importers' pricing decisions are likely to change. Importers can now rebuild profit margins by adjusting the origin mix, especially when there are competitive quotations. Latin American producers previously pushed prices up to near the tariff ceiling of India, and now that Indian supply is rebounding, it will inevitably affect buyers' purchasing decisions," Morrison said. Ecuador's "bonus period" may be gone John Alarcon, Director of Business at Ecuadorian company Davmercorp, said on LinkedIn: "With the tariff advantage gone, cost control, feed efficiency, and yield optimization will become our top priorities. India is a country that has both export scale and low-cost advantages. When it re-enters the competition, Ecuador's growth in the value-added product sector may also slow down. Whether it is raw shrimp, cooked shrimp, or other value-added products, it will be very difficult to compete head-to-head with India." However, this does not mean that Ecuadorian white shrimp have no advantages. "Sustainability, traceability, SSP (Sustainable Shrimp Partnership) standards, international certifications, and stability are no longer plus points, but our real competitive advantages," Alarcon said. In addition, Ecuador has logistical advantages, with a shorter shipping period to the United States compared to India. Ecuador is not entirely dependent on the U.S. market. At the Global Seafood Market Conference (GSMC) held by the National Fisheries Institute (NFI) in the United States, Gabriel Luna, General Manager of Ecuadorian company GLuna Shrimp, said, "We have not chosen to put all our eggs in one basket. We are in Europe..."