China’s intent to slap 25 per cent tariffs on Canadian seafood merchandise provides one other layer of uncertainty to an trade already threatened by U.S. duties, say sector representatives in Atlantic Canada.
China introduced the retaliatory tariffs on Saturday in response to the Canadian surtax of 100 per cent on all Chinese language-made electrical autos, and of 25 per cent on metal and aluminum.
And whereas 25 per cent U.S. tariffs on Canadian seafood and different items are on pause till April 2, the Chinese language duties are to take impact March 20 on an extended listing of merchandise like lobster, snow crab and shrimp.
In an interview Monday, Kris Vascotto, government director of the Nova Scotia Seafood Alliance, referred to as China’s transfer a “very strategic hit” on Atlantic Canada’s fish and seafood sector.
“That is going to current itself as a problem, there’s little doubt,” stated Vascotto. “Primarily the panorama has essentially modified. The announcement is yet one more clear demonstration that we’ve seen over the previous few months that commerce actions have reactions.”
Vascotto, whose group represents 135 shore-based processors and shippers, stated it’s anticipated that the ensuing worth volatility will have an effect on the provision chain “proper all the way down to the harvester.”
He stated the Chinese language duties will hit lobster and snow crab in addition to area of interest merchandise corresponding to sea cucumber, whelk and prawns.
“By some means these tariff prices should be absorbed to ensure that us to maintain transferring product,” Vascotto stated. “We will positively count on a reasonably risky season developing.”
Get each day Nationwide information
Get the day’s high information, political, financial, and present affairs headlines, delivered to your inbox as soon as a day.
Based on the federal authorities, China is Canada’s second largest fish and seafood export market after the U.S., with $1.3 billion in merchandise shipped to the Asian nation in 2024.
Federal figures present Canada’s high seafood exports to China in 2023 have been lobster at $569 million, crab at $300 million and shrimp at $262 million, accounting for 78 per cent of all seafood exports to that nation.
Nat Richard, government director of the Lobster Processors Affiliation, a Moncton, N.B.-based group that represents 25 processors of frozen lobster and crab merchandise in New Brunswick, Nova Scotia and P.E.I., stated that whereas everyone seems to be “slightly bit shaken,” the impacts will doubtless be felt extra by firms that ship stay lobsters to worldwide markets. Richard stated exports to the U.S. of frozen lobster stood at 80 per cent final yr whereas these to China accounted for 3 per cent.
Nonetheless, he stated the consequences will differ throughout particular person processing vegetation.
“At a normal degree within the mixture it’s a small slice of the frozen lobster product market, however for some particular person vegetation they do a good bit of enterprise in China. The export profile varies from plant to plant.”
Richard stated the stakes are increased for processors concerning U.S. tariffs due to a extremely built-in provide chain.
On March 4, the Donald Trump administration imposed tariffs of 25 per cent on virtually all Canadian and Mexican imports, with a decrease 10 per cent levy on Canadian power. However final week, after days of market chaos, Trump signed an government order delaying till subsequent month these tariffs for items — corresponding to seafood — that meet the rules-of-origin necessities underneath the free-trade settlement between the U.S. Canada and Mexico.
Richard stated a lot of the lobster caught by fishermen in Maine, which accounts for about 85 per cent of the U.S. harvest, is processed by Canadian vegetation.
“Whether or not we now have a tariff or not we’ll proceed to provide the market … however clearly there’s a concern that it’ll have an effect on {the marketplace}, it may weigh on demand.”
In the meantime, Stewart Lamont, managing director of Tangier Lobster Firm Ltd., in Tangier, N.S., stated the 25 per cent tariff by China is along with a earlier seven per cent tariff and 9 per cent worth added tax imposed by that nation.
“It’s substantial to say the least and it comes at a time once we are already being focused underneath American tariffs,” stated Lamont, whose firm ships stay lobster to 13 international locations around the globe.
The corporate is situated simply over an hour away from air freight companies on the Halifax Stanfield Worldwide Airport and Lamont stated it has succeeded over a interval of about 40 years in diversifying its export markets. It at present ships no product to the U.S. and about 15 per cent to China.
“We’ve all the time tried to be diversified and all our eggs will not be within the Chinese language basket that’s for certain,” he stated.
Nonetheless, there are firms who ship most of their stay lobster to China and Lamont stated it would make issues tough as a result of new markets aren’t obtained in a single day.
“All of these issues take time, cash, advertising and marketing and creativity, so the pivot is more difficult than folks may suppose,” he stated.
Based on China’s Customs Tariff Fee of the State Council, further 100 per cent tariffs will likely be imposed on Canadian rapeseed oil, oil truffles and peas, and extra 25 per cent tariffs will apply to pork and aquatic merchandise.
© 2025 The Canadian Press
Source link