The new 50% tariff imposed by the United States on Brazilian tilapia is expected to have a major impact on the country’s industry. C.Vale, one of Brazil’s largest producers, exports nearly 30% of its output—about 200,000 tilapia per day—to the North American market.

C.Vale’s industrial director, Reni Girardi, said in a statement the company will need to restructure its production chain in response to the tariffs.

“If you look at the statistics, 98% of Brazil’s tilapia exports go to the U.S.,” Girardi said. “That means almost everything we export goes to that market. Today, we have no alternative market. The European Union and the United Kingdom have markets with a similar profile, and we’ve been working with associations and the Brazilian government to open them. But they’re not yet accessible to us. In the short term, for exports, we have no alternatives that can absorb the volume we send to the U.S. Our only option for now is the domestic market.”

While C.Vale has a diversified operation that includes poultry, pork, and grain production, Girardi warned that small and medium-sized fish producers will be hit the hardest.

“We’re going to oversupply the domestic market, and that will push into the space of smaller producers who sell locally or regionally,” he explained. “This over-offer will affect the entire value chain. Small independent producers live exclusively from fish farming, and if they lose their markets, their livelihood is at risk.”

Despite the setback, Girardi said C.Vale remains committed to aquaculture. “We will support and continue to believe in fish farming. But for those small and medium producers who depend solely on it, the impact will be much greater.”