2026-06-18
2026-6-2 The U.S. Trade Representative has proposed new Section 301 tariffs on several economies, citing China's failure to take effective measures to address trade in goods involving forced labor as the reason. The proposed tariff would be 12.5%.
This means that after the 10% additional tariff imposed in July expires, the tariff on tilapia fillets between China and the United States will increase to 37.5%, which is 2.5% higher than the current tariff of 35%.
These adjustments sent different signals to the market. Initially, factories, hearing that the Section 122 tariff was about to expire, actively stocked up, a move that slightly increased raw material prices. Then, the proposed implementation of the new Section 301 tariff dampened factories' willingness to purchase, but raw material prices remained stable. Therefore, many US importers acted at this time, stockpiling large quantities of goods before the Section 122 tariff ended in July, while the tariff was still 35%, to prepare for the subsequent 37.5% Section 301 tariff. This further led to price increases in the raw material market, hence the current slightly high price of fish fillets. Raw material prices may decrease to a suitable level in July and August.
It's important to note that current oil prices have led to unprecedentedly high shipping costs, and it's believed that procurement costs at this time will likely be similar to those in July and August, as freight rates are expected to decrease during those months. Nevertheless, tariffs remain a major factor influencing procurement plans. The price of tilapia fillets in the US market is expected to remain relatively stable in the future.
The tilapia trade between China and the US has a long history, and it's highly unlikely that any other market can replace China's position in the short term. Therefore, many American buyers still
prefer to source from China, saving them numerous after-sales problems. This situation is expected to continue for at least five years.
Therefore, American buyers shouldn't view tariffs as an import signal. Although they increase their costs, the benefits are considerable. The tariff costs are borne not only by consumers but also
by suppliers. To justify a price increase, simply controlling market supply—high demand and low circulation—might change tilapia's market position by increasing the value of tilapia fillets, thus
justifying a price hike.
The above content is for reference only. Some viewpoints are from the internet, and our company is not responsible for them.
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