Impact of Chinese Tariffs on Canadian Seafood Industry

The Fisheries Council of Canada has expressed grave concerns regarding the upcoming tariffs on Canadian seafood imports to China, warning that this could spell disaster for the seafood industry, particularly in Newfoundland and Labrador.

Challenges of Market Shifts

Alberto Wareham, chair of the Fisheries Council of Canada and president of Icewater Seafoods Inc., highlighted that the announced 25 percent tariff will take effect on March 20 and will target over 40 different seafood products, including lobster, crab, and shrimp. This measure is seen as retaliation against Canadian tariffs imposed on steel, aluminum, and electric vehicles last fall.

Wareham emphasized the frustration of the seafood sector, noting that a significant percentage of Canadian seafood goes to China, with 16 percent of all seafood exports destined for that market. Additionally, 67 percent is exported to the U.S. This means that with the looming U.S. tariffs—set to be implemented on April 2—a staggering 83 percent of Canadian seafood exports would face additional tariffs.

Urgent Need for Support

"Many of our members are facing devastation due to these tariffs," Wareham stated, underscoring the difficulty for companies to pivot to new markets on short notice. He called for support from both the federal and provincial governments to help sustain these businesses during this challenging time.

The implications of the Chinese tariffs extend beyond just the popular seafood like lobster; other species, such as sea cucumber and cold water shrimp from Newfoundland and Labrador, will also be significantly impacted.

Danny Dumaresque, president of Labrador Gem Seafoods, remarked that while he does not directly sell to China, he recognizes the importance of that market for many others across the country. He noted how the prior demand gap left by the U.S. market was increasingly filled by China, which is now effectively lost.

Further complicating matters, Dumaresque raised concerns about whether these tariffs would apply to Hong Kong, creating uncertainty for shipments intended for that market.

As the industry braces for these changes, the consequences of tariffs threaten to create catastrophic impacts, challenging the future of many seafood businesses in Canada.

Tariffs, Seafood, China