Canada’s East Coast seafood industry is relieved as the federal government has excluded U.S. fish and seafood products from its counter-tariff list. The adjustment was announced on Wednesday night following feedback received by the government. This decision came after the government imposed counter-tariffs on $27.6 billion worth of U.S. goods in response to new 50 per cent tariffs imposed by the U.S. over the weekend. The initial list of goods subjected to tariffs included seafood products taxed at a 25 per cent rate.
Industry leaders expressed concerns that the countermeasures could have had severe repercussions for the seafood business, which had not been involved in the trade war until the recent announcement. The integration of the industry across the border was highlighted by Nat Richard, the executive director of the Lobster Processors Association. A significant portion of American-caught lobster is processed in Canadian plants during the off-season before being exported back to the U.S.
The potential impact of the tariffs on the seafood industry was a major worry for stakeholders. Kris Vascotto, the executive director of the Nova Scotia Seafood Alliance, highlighted that nearly all seafood items imported by Canada were on the retaliatory tariff list, indicating a broad impact. Joanne Losier, the executive director of New Brunswick Crab Processors, expressed concerns about the industry becoming a target and facing additional tariffs from the U.S.
Despite the removal of seafood products from the counter-tariff list, the Canadian government stated that it would continue its equal response to U.S. products. Certain items such as copper wire and charcoal have been added to the list to maintain a dollar-for-dollar impact. These items will be subjected to a 50 per cent tariff starting on September 8.
Minister of Finance François-Philippe Champagne emphasized that the government made the adjustment in the best interest of Canada after listening to Canadians. The decision was well-received by industry representatives, as it alleviated concerns regarding the potential impact of tariffs on the seafood sector.