Canadian seafood industry stakeholders on the East Coast are feeling relieved as the federal government has excluded U.S. fish and seafood products from its list of retaliatory tariffs. The decision, announced late Wednesday night, was made in response to feedback received. This adjustment came after the government imposed counter-tariffs on $27.6 billion worth of U.S. goods following the U.S.’s imposition of 50% tariffs on similar goods over the weekend due to failed trade talks.
The initial list of goods subject to tariffs included many seafood products taxed at a 25% rate. Industry leaders were concerned about the potential negative impact these countermeasures could have on the seafood business, which had not been involved in the trade war until the recent announcement.
Gilles Thériault, former president of the New Brunswick Crab Processors Association, expressed relief that the tariff on U.S. seafood was removed. According to Nat Richard, executive director of the Lobster Processors Association representing 25 processors in the Maritimes, the industry’s integration across the border is significant. American-caught lobster is often processed in Canadian plants during the off-season before being exported back to the U.S.
The 25% tariffs would have made seafood processing in Canada economically unviable, leading to potential early closures of processing plants employing hundreds of workers. Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, highlighted the broad impact the retaliatory tariffs could have had on the entire seafood industry in Canada.
Joanne Losier, executive director of New Brunswick Crab Processors, expressed concerns about the Canadian seafood industry being targeted for further tariffs. Over 90% of Canada’s snow crab is exported to the U.S., and there is hope that it remains unaffected by tariffs.
Nova Scotia Premier Tim Houston commended the federal government for heeding concerns raised by industry representatives regarding seafood tariffs. Despite removing some tariffs, the government stated it would maintain a proportional response to U.S. products. Certain products like copper wire and charcoal have been added to the list to ensure a dollar-for-dollar impact, with these items slated for a 50% tariff starting on September 8.
Finance Minister François-Philippe Champagne emphasized that the decision to update the tariff list was made in the best interest of Canada after listening to Canadians. The minister did not directly address the potential message the move might send to the White House during a news conference on Thursday.
