China has announced a 25% tariff on Canadian seafood products, escalating tensions between the two nations. This move comes as a response to Canada's recent surtax on Chinese-made electric vehicles. The new tariffs, set to take effect on March 20, will impact a range of seafood, including lobster, snow crab, shrimp, and niche products such as sea cucumber, whelk, and prawns.
Canada's seafood industry faces significant challenges as a result of these tariffs. In 2023, the country exported $569 million worth of lobster, $300 million in crab, and $262 million in shrimp to China. These three products accounted for 78% of all seafood exports to the Asian nation. The introduction of tariffs is expected to create volatility throughout the supply chain, affecting everyone from harvesters to exporters.
Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, expressed concern over the situation.
"This is going to present itself as a challenge, there’s no doubt," – Vascotto
The Nova Scotia Seafood Alliance represents 135 shore-based processors and shippers, many of whom are likely to feel the effects of the tariffs. Vascotto further explained that "somehow these tariff costs will have to be absorbed in order for us to keep moving product." The resulting price volatility could have widespread repercussions across the industry.
China ranks as Canada’s second-largest fish and seafood export market after the United States. In 2024, Canada shipped $1.3 billion worth of products to China. The new tariffs are a stark reminder of the interconnectedness of global trade and how quickly market conditions can shift.
Richard Lamont from the Lobster Processors Association also weighed in on the issue.
“It’s substantial to say the least and it comes at a time when we are already being targeted under American tariffs,” – Lamont
While exports to China of frozen lobster accounted for only 3% last year, a much larger share—80%—went to the United States. The stakes for Canadian processors are particularly high regarding U.S. tariffs due to a highly integrated supply chain. Much of the lobster caught by fishermen in Maine is processed by Canadian plants, emphasizing how deeply intertwined these markets are.
The Tangier Lobster Company Ltd., located near Halifax Stanfield International Airport, has successfully diversified its export markets over four decades. Despite its efforts to mitigate risks through diversification, Richard from Tangier Lobster Company noted,
“Whether we have a tariff or not we will continue to supply the market … but obviously there is a concern that it will affect the marketplace, it could weigh on demand.” – Richard
The U.S. tariffs on Canadian seafood and other goods remain on pause until April 2. This temporary reprieve offers some breathing room, but industry players are bracing for potential impacts once these tariffs are reassessed.
Kris Vascotto reiterated the shifting landscape of international trade.
“Essentially the landscape has fundamentally changed. The announcement is yet another clear demonstration that we’ve seen over the last few months that trade actions have reactions.” – Vascotto
He further added that "we can definitely expect a fairly volatile season coming up," indicating the uncertainty that lies ahead for Canadian seafood exporters.
