U.S. Shrimp Industry Faces a Whale of a Problem

If you’ve ordered shrimp at a restaurant lately and assumed it came from the Gulf of America, there’s a good chance you were misled. Instead of fresh-caught Gulf shrimp, you may have been served imported shrimp—often from overseas farms—mislabeled as local.

This growing problem, known as shrimp fraud, isn’t just a minor mix-up. It’s a widespread issue that affects consumers, threatens the livelihood of American shrimpers, and raises serious concerns about food safety and labor practices abroad.

According to a recent investigation by SeaD Consulting, a food safety firm, shrimp collected from restaurants in Gulf Coast cities—including St. Petersburg, Baton Rouge, Biloxi, Galveston, and Tampa—was tested to determine its true origin. The results were startling: 43 to 96 percent of shrimp samples were falsely labeled as Gulf-caught. That means in some cities, nearly every shrimp advertised as “local” was actually imported.

Why It Matters

For diners, this isn’t just a labeling error. Consumers who pay a premium for wild-caught Gulf shrimp are being misled, and the substitution may pose health risks. Shrimp raised on foreign farms—particularly in countries like India, Vietnam, Ecuador, and Indonesia—are often produced under conditions that wouldn’t meet U.S. safety standards.

A report by the Associated Press found that in some Indian shrimp processing plants, workers earn as little as $2–$5 per day and lack basic protective gear such as gloves or hairnets. Many work in unsanitary conditions, peeling shrimp by hand for hours. Without safety protocols, contamination from skin, hair, or dirty surfaces becomes a real concern.

On top of that, reports from watchdog agencies have documented the use of banned antibiotics, chemical additives, and even forced labor in parts of the overseas shrimp industry. These practices not only endanger public health but also give foreign producers an unfair price advantage.

The Cost of Going Local

Buying authentic Gulf shrimp might be a little more expensive—but it helps support a domestic industry that plays by much tougher rules.

According to data from ZipRecruiter, a shrimp boat deckhand in the U.S. earns an average of $17.50 per hour. Larger processing plants often use machines for peeling and are required to follow strict health regulations, including FDA inspections, sanitation controls, and labor protections.

By comparison, many overseas producers benefit from government subsidies, low production costs, and lenient regulations, allowing them to flood the U.S. market with cheap shrimp. While this may help lower prices at the counter, it’s devastating for local shrimpers who struggle to compete.

A Shrimp War on Tariffs

In April 2025, the U.S. government introduced a new tariff policy to protect American shrimpers. Initially, this included a 10 percent base tariff on all imported shrimp, along with additional duties ranging from 10 to 46 percent for specific countries known for heavy subsidies and poor labor standards—26 percent for India and 46 percent for Vietnam, for example.

But on April 11, 2025, the policy hit a snag. The higher duties were paused and reduced to a flat 10 percent for a 90-day review period—excluding China, which remains under stricter tariffs. The move sparked concern among U.S. shrimpers and industry advocates, who worry the pause could lead to another flood of underpriced, low-quality imports.

Critics also point out that many of these countries place high tariffs on U.S. shrimp exports, ranging from 13 to 45 percent, while the U.S. has long allowed cheap imports with minimal tariffs—making the playing field anything but level.

The Future of Gulf Shrimp

For many Americans, shrimp isn’t just a meal—it’s a tradition, especially in the Gulf Coast states where the shrimping industry has supported generations of families. But if current trends continue, that way of life could disappear.

Shrimp fraud makes it harder for honest businesses to survive. When imported shrimp is falsely labeled and sold as local, it undermines consumer trust and hurts shrimpers who work hard to bring in a sustainable, high-quality catch.

Some restaurants and grocery stores have begun to fight back by offering traceable, certified Gulf shrimp with clear labeling and supply chain transparency. Industry groups are also pushing for stronger enforcement of labeling laws and more inspections at ports and points of sale.

In the meantime, consumers who want to support the domestic shrimp industry are encouraged to ask questions about where their shrimp comes from and to look for trusted certifications. Choosing real Gulf shrimp may cost a little more—but it helps ensure food safety, fair labor practices, and the survival of one of America’s most iconic seafood industries.