Double whammy tariffs from U.S., China hit Canadian seafood exporters at expo

A rare bright orange lobster shares the tank with regular lobsters at the Fisherman's Catch Seafood restaurant in Raymond, Maine, Thursday, July 23, 2015. (AP / Robert F. Bukaty)

The largest seafood trade expo in North America, held in Boston, has become a hub of concern for Canadian seafood suppliers who are grappling with the impact of tariffs imposed by the U.S. and China.

Blaine Sullivan, president and co-owner of Ocean Choice International, an Atlantic Canada-based company, said “tariffs are top of mind” for exporters and creating “uncertainty” at the Seafood Expo North America.

The 25 per cent U.S.-imposed tariff on Canadian seafood exports, and other goods, set to hit on April 2 is a major concern for the industry, Suillvan explained.

“Twenty-five per cent is not a small number. In many cases, it’s mostly more than the margin on seafood. So, there’s definitely hundreds of millions of dollars at risk, from a Canadian perspective, in both China and the U.S.,” Sullivan said.

Adding to the industry’s woes, China announced its plan to impose 25 per cent tariffs on seafood exports.

The Chinese duties will take effect Thursday on a long list of products like lobster, snow crab and shrimp. This retaliatory tariff was in response to Canada’s surtax of 100 per cent on all Chinese-made electric vehicles and of 25 per cent on steel and aluminum.

According to the federal government, China is Canada’s second largest fish and seafood export market after the U.S., with $1.3 billion in products shipped to the Asian nation in 2024.

Federal figures show Canada’s top seafood exports to China in 2023 were lobster at $569 million, crab at $300 million and shrimp at $262 million, accounting for 78 per cent of all seafood exports to that country.

The close relationship between the Canadian and U.S. seafood markets has become more apparent during this trade dispute. As Sullivan noted, “If you look at certain shellfish like lobster, (it) crosses the border back and forth between the northeast U.S. and Canada for various reasons whether it’s to hold, to distribute or to process.”

Navigating the challenges

With the double whammy of tariffs from both the U.S. and China, Canadian seafood exporters are exploring ways to diversify their markets. But Sullivan acknowledged the difficulty, especially for products like snow crab.

In 2024, Canada’s most valuable exports by species were lobster, snow or queen crab, and Atlantic salmon, according to the federal government.

Exports to the U.S. of frozen lobster stood at 80 per cent last year, while those to China accounted for three per cent, according to executive director of the Lobster Processors Association Nat Richard.

For Nova Scotia seafood companies and sellers, the search for new markets is proving optimistic. Fisheries Minister Kent Smith said Nova Scotia companies have a deal with a new contact in the Philippines and one is in the works with an existing importer in Spain to expand that market.

Lobster seller Shawn Landry said he’s been in talks with countries like Singapore, Southeast Asia, Italy and Europe.

Atlantic Canada exported $6.1 billion in seafood to over 90 countries in 2024, with more than 65 per cent of those exports going to the U.S.

The trade expo began on Sunday and ends today, with more than 1,200 exhibiting companies from 50 countries taking part, including a delegation of 48 Atlantic Canadian companies.

With files from The Canadian Press and CTVNewsAtlantic.ca’s Jonathan MacInnis