Canada’s seafood industry braces for fiscal impact with arrival of Chinese tariffs

The Maritime seafood industry is dealing with Chinese tariffs that took effect Thursday.

A 25 per cent tariff from China on Canada’s seafood exports is the first blow in what could be a devastating double punch, as another 25 per cent U.S. imposed tariff will hit the same industry on April 2.

New Brunswick lobster fisherman Carl Allen is living with a high level of uncertainty and fear.

“We’re the first ones to take the hit,” said Allen from his home in Cap-Pelé. “If they can’t pass that on to their customers at the other end, and they can’t absorb with themselves, that leaves me, the harvester, to absorb this.”

The tariffs are in response to Canada adding a 100 per cent levy on Chinese electric vehicles back in October.

The tariffs could discourage the purchase of seafood in China, which is Canada’s second-largest lobster customer behind the U.S.

According to Lobster Council of Canada Executive Director Geoff Irvine, those costs could get passed to Canadian consumers.

“On top of the U.S. tariff threat, it’s a lot of uncertainty and concern about how pricing will be in the spring when the new season is open, and just a lot of nervousness,” said Irvine. “It remains to be seen if our customers will accept the 25 per cent increase, because that is what it means. It is either they pay the tariffs, or our exporters pay the tariffs.”

As the federal and provincial governments search for new markets to sell seafood, consumers should expect industry-wide price adjustments, and they could be long-term.

“The Chinese are dug in on this, and we are going to have to navigate what this means for our markets,” said Allen, who added other aspects of the seafood industry could also be impacted, including boat builders, equipment manufacturers, processing plants and restaurants.