China has decided to impose a 25 percent tariff on Canadian seafood products, creating more uncertainty for an industry already facing challenges from U.S. duties. This announcement came after Canada placed a 100 percent surtax on Chinese electric vehicles and a 25 percent tax on steel and aluminum.
The Chinese tariffs will take effect on March 20 and will impact a range of seafood items, including lobster, snow crab, and shrimp. Kris Vascotto, the executive director of the Nova Scotia Seafood Alliance, described the move as a targeted attack on Atlantic Canada’s seafood sector. He emphasized that this situation will create significant challenges, affecting the entire supply chain from processors to harvesters.
Although U.S. tariffs on Canadian seafood are currently on hold until April 2, the Chinese tariffs add to the pressure. Vascotto noted that this new tariff will likely lead to price fluctuations, complicating the market for many producers. He mentioned that niche products like sea cucumber and prawns would also be affected.
Nat Richard, from the Lobster Processors Association, shared that while the immediate impact might be limited for some processors, those who ship live lobsters to China could face more severe consequences. He pointed out that most frozen lobster exports go to the U.S., making the Chinese market less critical for many. However, individual processing plants may feel the strain differently based on their export profiles.
Richard also highlighted the interconnectedness of the supply chain, which makes the U.S. tariffs a more pressing concern. He noted that the majority of lobster caught in the U.S. is processed in Canada, which adds another layer of complexity to the situation.
Stewart Lamont, managing director of Tangier Lobster Company, expressed concern over the new Chinese tariffs, which come on top of existing tariffs and taxes. He explained that while his company has diversified its markets and does not rely heavily on China, others that do could struggle to find new buyers quickly.
The Canadian seafood industry is significant, with China being the second-largest export market after the United States. In 2023, Canada exported $1.3 billion worth of seafood to China, with lobster alone accounting for $569 million. The new tariffs could disrupt these valuable trade relationships and create a volatile market for seafood producers across Canada.