US shrimp fishers see Trump tariffs as a lifeline: ‘We’re basically on our knees’

TruthLens AI Suggested Headline:

"Louisiana Shrimp Fishers Hope Tariffs Will Revive Struggling Industry"

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TruthLens AI Summary

Sandy Nguyen, a second-generation shrimper from New Orleans, passionately advocates for the quality of Louisiana shrimp, claiming it surpasses that of other states. Her family, who immigrated from Vietnam, has been part of the Gulf Coast's rich shrimping tradition, which has historically contributed significantly to the US seafood supply. However, the shrimp industry has faced numerous challenges over the past few decades, particularly during the COVID-19 pandemic, which saw a decline in demand and prices. Additionally, a series of hurricanes has caused extensive damage, leading to substantial financial losses. The recent geopolitical tensions, including the invasion of Ukraine, have further exacerbated rising operational costs due to increasing fuel prices, putting additional pressure on local shrimpers. The influx of imported shrimp from countries like Ecuador and India has also made it difficult for domestic producers to remain competitive, with many shrimpers describing themselves as being 'on their knees' due to the impact of these imports on pricing and market viability.

In response to these challenges, some shrimpers have found a glimmer of hope in the tariffs imposed by the Trump administration, which they believe could provide a necessary lifeline. Acy Cooper, president of the Louisiana Shrimp Association, noted that these tariffs might help restore a foothold for US shrimpers in the market. However, skepticism remains among many in the industry, including Nguyen, who argue that tariffs may not adequately address the underlying issues, such as the consolidation in processing and distribution that limits their negotiating power. Furthermore, concerns have been raised about the potential for tariffs to increase costs for shrimpers on essential materials, thereby negating any benefits. The disconnect between retail prices and the prices paid to shrimpers has become increasingly evident, with many in the industry feeling that the larger corporations benefit disproportionately from the current market dynamics. As the shrimping community continues to grapple with these challenges, the future remains uncertain, with many shrimpers fearing for their livelihoods and the sustainability of their way of life.

TruthLens AI Analysis

The article examines the complex landscape faced by U.S. shrimp fishers, particularly in Louisiana, against the backdrop of tariffs introduced during Donald Trump's administration. It highlights the struggles of local shrimpers amid rising competition from imports, natural disasters, and economic challenges.

Impact of Tariffs on Local Fishers

The announcement of tariffs by Trump has sparked a mix of optimism among some shrimpers who see it as a potential lifeline. The article captures the sentiment that while tariffs may disrupt other industries, they could provide much-needed support for local shrimpers battling imported seafood prices that have been detrimental to their business.

Economic Context and Challenges

The shrimping industry in Louisiana has faced a multitude of challenges in recent years, including significant losses due to hurricanes and the COVID-19 pandemic. The article outlines how the combination of these factors, along with inflation and rising operational costs, has severely impacted local shrimpers. It paints a stark picture of an industry "on its knees," struggling to survive amidst increasing competition from international markets.

Public Perception and Community Sentiment

The article aims to evoke a sense of solidarity and support for local shrimpers. By sharing personal stories, such as that of Sandy Nguyen, it personalizes the struggle and invites readers to empathize with those affected by these economic pressures. This approach may serve to rally public support for domestic seafood industries, emphasizing the importance of local produce over imports.

Hidden Agendas and Broader Implications

While the article focuses on the shrimping industry, it subtly hints at the broader implications of tariffs on global trade dynamics. It raises questions about the long-term sustainability of relying on tariffs as a protective measure, especially when considering the potential backlash on other industries. The complexity of these trade policies may be downplayed in favor of a more localized narrative.

Manipulative Elements and Reliability

The article does exhibit some elements of bias, particularly in its portrayal of tariffs as a "good" thing for shrimpers without fully addressing the negative consequences for other sectors. This could lead to a skewed understanding of the overall economic landscape. The reliability of this piece hinges on its selective focus, which may manipulate public perception regarding the broader economic impacts of such policies.

Community Support Dynamics

The narrative appeals primarily to communities directly involved in the seafood industry, particularly those in regions reliant on shrimping. It seeks to galvanize support from local consumers who may be more inclined to purchase American shrimp, fostering a sense of national pride and economic patriotism.

Market Reactions and Economic Forecasts

In terms of market implications, this article could influence consumer behavior, potentially increasing demand for U.S. shrimp amid a backdrop of rising prices for imported varieties due to tariffs. Investors in the seafood sector may find this news significant as it highlights both challenges and potential recovery paths for domestic producers.

Geopolitical Considerations

While the article doesn’t delve deeply into geopolitical implications, it indirectly references the global trade tensions that tariffs can exacerbate. This discussion is relevant to ongoing debates about trade policies and their impact on local economies and international relations.

Use of AI in News Writing

There is no clear indication that AI was used in the writing of this article. However, the structured presentation of information and focus on personal narratives could suggest an approach that seeks to engage readers emotionally, a technique that could be enhanced by AI-assisted writing tools.

The reliability of the information presented is moderate. While it accurately reflects the challenges faced by shrimpers and the potential benefits of tariffs, it lacks a comprehensive view of the broader economic context and potential negative repercussions. The article focuses primarily on the shrimping community's perspective, which may not fully capture the complexities of the subject matter.

Unanalyzed Article Content

Sandy Nguyen has strong opinions about where the best shrimp in the US is produced.

A second-generation shrimper in New Orleans, Nguyen maintains “our [Louisiana] shrimp tastesbetter than Florida shrimp or Mississippi shrimp or Texas shrimp”. Her family moved to the Gulf Coast from Vietnam during theJimmyCarter administration,and her dad, likemany such immigrantsto the area, worked as a fisher. The business gave Nguyen a front-row seat to one of the nation’s most abundant sources of seafood.

Shrimp thrive in brackish waters, and Louisiana has the largest delta on the continent, where fresh water from the Mississippi River mixes with the Gulf of Mexico’s saltwater. In part due to the sheer expanse of this delta, Louisiana shrimpers provide nearly a quarter of all shrimp caught in the US, supplying anestimated 72m lbs of shrimpin 2023 – the largest share of any state.

But things have changed drastically since the 1980s, when the Nguyen family settled in Louisiana. Demand and prices dropped during the Covid-19pandemic. A run of devastating hurricanes – Laura, Delta, Zeta and Ida – caused overhalf a billion dollars in lossesto the state’s seafood industry since 2020. Nguyen hoped that 2022 would be a turning point, but then Russia invaded Ukraine, and the price of diesel climbed, driving up the cost to operate trawlers. As inflation appeared to be climbing everywhere else,the wholesale price of shrimp declined.

All these factors were happening alongside another massive, decades-long change: a surge in imported shrimp from Asia and South America. Talk to most shrimpers and they will say this familiar foe is driving down the price of shrimp, making it nearly impossible for US shrimpers to hang on.

So when Donald Trump announcedsweeping tariffs, a move that threw global markets intotumultand caused consternation among many industries, some American shrimpers instead expressed optimism.

“I know it’s going to affect a lot of other industries. But for us, it’s good,” said Aaron Wallace, who helps run Anchored Shrimp Company inGeorgia.

The US shrimp industry pales in comparison to its counterparts in Ecuador, India, Indonesia and Vietnam. In those countries, aquaculture farms proliferate, churning out a prodigious volume of shrimp. Together, those four countries account for over 90% of shrimp imported to the US, or approximately 1.5bn lbs of shrimp in 2023. That’s more than 20 times the amount of shrimp produced inLouisiana.

“Really, our battle is the farm-raised shrimp industry overseas,” Wallace added. “We’re basically on our knees [due to] what the imports do.”

“The farm-raised industry has created a market where shrimp is readily available anywhere, everywhere,” he continued. “It’s changed the way we view shrimp versus back in the day.”

Today, shrimp is the most widely consumed seafood in the US, outranking salmon, tuna and tilapia. Like chicken breast, it’s a protein that people expect to buy cheaply and regularly. Unlike its crustacean cousins, lobster and crab, which are typically associated with luxurious feasts, shrimp is economical andubiquitous. It’s frequently found on the menus of chains like Popeyes to all-you-can-eat specials at Sizzler and, formerly, Red Lobster.

But shrimp’s cheapness and commonplaceness have come with a cost. Consumers aren’t often aware of the fact that most of the shrimp they consume is imported.

Acy Cooper, president of the Louisiana Shrimp Association and a fourth-generation shrimper, said that tariffs provide an opportunity for US shrimpers to regain a foothold in the domestic seafood industry.

“We are losing our local industry,” Cooper said. That moved Cooper to vote for Trump, hoping he would “make America great again in all sectors”, including shrimping.

When Cooper was growing up in the 1970s, shrimping was a good job, one that could easily support a family. Later, in the 1980s, when Cooper was first getting his start, he could get $1 per pound of small shrimp and $4.50 per pound of large shrimp. But last year, he could barely get $1 per pound from dockside buyers for his biggest shrimp.

“Look, I quit school in the eighth grade and went to work fishing because I made more money than college graduates at the time,” Cooper said. But his own son chose to leave the industry. “He just broke the chain in my family,” Cooper said. “He’s got three kids in his household, and he couldn’t make enough to survive.”

Deborah Long, a spokesperson for the Southern Shrimp Alliance, said: “The problem is not cheap imports. The problem is the counterproductivetrade policieswe have that have led to cheap imports” and that other countries benefit from practices not allowed in the US.

Long pointed to the fact that manyforeign aquaculture operations are subsidized by international financial institutions backed by taxpayer dollars and employunpaid laboror using bannedantibiotics. From Long’s perspective, these factors allow foreign shrimp suppliers to undercut domestic shrimp suppliers’ prices.

“When you look at trade data, you will find that the 1980s were the heydays for this industry,” Long said. “Aquaculture came around, and shrimpers were able to compete against it. And around the early 2000s, you started seeing a flood of imports. That’s where allegations ofdumping– selling below fair value – came in.”

However, Martin Smith, a Duke University economist who studies fisheries and seafood markets, said it’s not clear that Trump’s recent broad-based tariffs – those that target a wide array of goods – are the right tool to address a flood of cheap shrimp imports.

He noted that the US Department of Commerce was already working onanti-dumping and countervailing duties, which aim to counteract the impact of dumping and governmental subsidies, on the biggest importers of shrimp. Already, those duties were showingmodest improvementsin ex-vessel prices, the prices that shrimpers are paid at the dock.

“In principle, the system had already addressed the aspects of competition that are unfair,” Smith said. “This additional layer of broad-based tariffs is really just saying that we are now going to make it unfair for the rest of the world.”

Smith also cautioned that any efforts to bolster the prices of shrimp could risk reducing the overall demand for shrimp, which would also adversely impact domestic shrimpers.

“There’s some real long-term risk here in using tariffs to try to elevate the prices of domestic product. … It could actually just push them back into being luxury goods,” Smith said.

Still,Long, of the Southern Shrimp Alliance, applauded Trump’s tariffs, which she hoped would put a dent in imports, while also acknowledging that it wouldn’t be a magic bullet for all of the issues facing shrimpers.

“It is a short-term measure that is desperately needed to support these guys and get them through other seasons while we address these systemic problems,” Long said.

But Nguyen remained skeptical as to whether the tariffs would actually help the industry to which she’s dedicated her whole life.

“I’m not excited about anything that Trump does,” Nguyen said. “Even though I’m broke, I can’t trust that his tariffs are going to help us because I understand the economics of the industry.”

She pointed out that tariffs could cause the price of rope, steel or even nets to go up, making the work of shrimping even more costly.

Plus, from Nguyen’s point of view, it’s not just cheap imports driving down the prices; it’s also the fact that there are fewer processors and wholesale distributors as the industry has consolidated, leaving shrimpers withlittle room to negotiate at the docks.

A report on theLouisiana shrimp value chain, produced for the Coalition to Restore Coastal Louisiana, recognized this disconnect, noting that shrimpers like Nguyen are at the bottom of a value chain that is trying to compete with low global prices. Shrimpers get the short end of the stick even when consumers are paying more for the shrimp at their supermarket or on their dinner plate.

Long, of the Southern Shrimp Alliance, echoed that point.

“While the prices collapsed from 2021 to 2023, and the industry lost more than half of its value – and the values of imports plunged $1.5bn as well – consumer prices, the retail price you would pay at a grocery store, reached record highs,” Long said. “There’s a big disconnect in the market there.”

Nguyen put it more bluntly.

“It’s the big dogs, the big companies, that hurt us,” she said, referring to the dockside buyers, as well as to the network of processors, distributors and retailers. “Part of the reason our prices went down drastically is that we’re making enough shrimp for all of them to get filthy rich.”

In her opinion, tariffs won’t fix that problem. And it won’t fix the devastation she has seen among shrimpers fighting to survive.

By 2023, she noted shrimpers she knew had “strokes, heart attacks, overdoses, domestic violence and children not being able to go to college”, Nguyen said. “An entire way of life was stripped from us for the last three years at no fault of our own.”

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Source: The Guardian