In a significant shake-up for the global seafood trade, the United States has introduced a new round of tariffs affecting a broad range of imported goods—including several key Australian seafood exports. As U.S.–China tensions, environmental policies, and domestic protectionism converge, these tariffs are poised to disrupt long-standing trade relationships and contractual frameworks. 

For Australian seafood exporters, particularly those trading in high-value products like rock lobster, abalone, and tuna, the implications are profound. Whether you’re a major industry player or a boutique exporter, understanding the legal, commercial, and logistical ripple effects is now critical. 

Overview of the Tariff Changes 

As of March 2025, the U.S. government has enacted a 10–25% tariff increase on select imported seafood categories, citing the need to protect domestic fisheries, respond to climate-driven stock declines, and re-balance trade inequities. 

At the time of writing, it is understood that the tariff on seafood will impact different species at a variable rate. For example,  

• Southern Rock Lobster – subject to a 15% tariff (previously 0% 
• Abalone (fresh and frozen) – now facing a 20% tariff. 
• Bluefin and Yellowfin Tuna (non-canned) – hit with a 10% tariff. 
• Shellfish and crustaceans – increased to 15–25%, depending on classification. 

While these rates might appear modest in isolation, they can erode profit margins, distort pricing, and destabilise contractual terms—particularly in long-term supply agreements denominated in US$. 

Impact on Existing Contracts 

1.Pricing Clauses and Margin Pressure

Many exporters operate under fixed-price contracts or supply agreements that do not automatically account for sudden cost shifts. With tariffs potentially absorbing 10–25% of the product’s landed value, exporters may find themselves operating at a loss unless renegotiation is possible. 

What to do: 

• Review your contracts for force majeure, hardship, or price adjustment clauses. 
• Initiate proactive discussions with U.S. buyers to share the burden or revise delivery schedules. 

2.Delivery and Delay Implications

Delays at U.S. ports due to new customs protocols or inspection regimes may affect time-sensitive shipments—especially for fresh seafood. 

What to do: 

• Check whether delivery timelines are flexible under your agreements. 
• Revisit risk of loss clauses—particularly if goods are FOB Australia vs. DDP (Delivered Duty Paid). 

3.Currency and Exchange Risk

Increased tariffs may be compounded by exchange rate volatility, especially if the AUD weakens, raising the real cost of U.S. imports. 

What to do: 

• Consider currency hedging options or renegotiation mechanisms. 
• Look into contracts with currency fluctuation thresholds or triggers for price renegotiation. 

Legal and Commercial Considerations 

Contractual Remedies 

While Australian exporters may seek to renegotiate terms, U.S. buyers might resist, citing “buyer market fatigue” or alternative sources. Consider whether contract frustration applies under US or Australian law, though it’s a high bar to prove. 

Trade Agreements & Dispute Resolution 

Australia–U.S. trade is governed in part by the Australia–United States Free Trade Agreement (AUSFTA). However, AUSFTA offers limited protection from unilateral U.S. tariff actions taken under the guise of national security or emergency economic powers. 

Disputes over changed trade terms or non-performance may invoke international arbitration or U.S. court jurisdiction, depending on your agreement. 

What to do: 

• Consult legal counsel to understand venue clauses, governing law, and dispute resolution mechanisms in current contracts. 
• Re-draft future agreements to incorporate more protective tariff mitigation clauses. 

Opportunities and Strategic Response 

While the tariffs represent a challenge, they also present a chance to re-evaluate and innovate. 

1.Diversify Markets

Consider expanding into tariff-free or lower-tariff regions like: 

• Southeast Asia (via RCEP) 
• Japan and South Korea (through bilateral agreements) 
• UAE and Gulf states, where demand for premium seafood is rising. 

2.Value-Add and Branding

Shift toward value-added products or emphasize sustainable sourcing and premium branding to justify higher pricing in the U.S. market. 

3.Invest in U.S. Processing or Partnerships

Some exporters may benefit from joint ventures with U.S. processors or distributors—potentially mitigating tariff exposure by landing bulk product and processing stateside.   

MainStream Aquaculture, a vertically integrated producer and supplier of barramundi, has purchased a 1,100-acre fish farm in Dateland, Arizona and has rebranded the product to ‘Desert Springs Barramundi’.  

Conclusion 

The new U.S. seafood tariffs are a wake-up call for Australian exporters. Whether they mark a temporary political manoeuvre or a longer-term shift in trade dynamics, exporters must act swiftly to assess their risk exposure, revise their contracts, and future-proof their commercial strategies. 

The key takeaway? This is not just a legal or compliance issue—it’s a strategic inflection point. Those who adapt early will be best positioned to ride out the storm and come out stronger on the other side. 

Need legal insight into how these tariffs affect your contracts or trading strategies – call us on 02 88583233.