Department representatives in Canada's Atlantic region said China's intention to tariffs of 25% on Canadian seafood products increased another layer of uncertainty in industries already threatened by U.S. responsibilities.
China announced retaliatory tariffs on Saturday in response to 100% of all Chinese-made electric vehicles in Canada and 25% of steel and aluminum.
Although U.S. tariffs on Canadian seafood and other goods last 25% until April 2, China's responsibilities will come into effect on March 20, listing a long list of products such as lobster, snow crab and shrimp.
In an interview on Monday, Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, called China a “very strategic hit” to the Canadian Atlantic fish and seafood industry.
“It will undoubtedly be a challenge,” Vascotto said. “Essentially, the landscape has fundamentally changed. The announcement is another clear proof that we have seen a response to trade actions over the past few months.”
Vascotto's organization represents 135 coast-based processors and shippers, he said the resulting price fluctuations are expected to affect the supply chain's “direct-to-harvesters”.
He said China's responsibilities will hit lobsters and snow crabs, as well as niche products such as sea cucumbers, whales and prawns.
“These tariff fees have to be absorbed in some way to keep us moving our products,” Vascotto said. “We can definitely expect a rather turbulent season to come.”
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According to the federal government, China is Canada's second largest export market for fish and seafood, with its products shipped to Asian countries in 2024.
Federal figures show that Canada's highest seafood exports to China in 2023 were US$569 million, crabs were US$300 million and shrimps were CAD 262 million, accounting for 78% of all seafood exports in the country.
Nat Richard, executive director of the Lobster Processors Association, is NB's Moncton, representing 25 processors for 25 processors in New Brunswick, Nova Scotia and PEI. While everyone is “slightly shocked”, companies that send lobsters to international markets may feel the impact even more. Richard said exports to the United States were 80% last year, while exports to China accounted for 3%.
He said these effects will vary from processing plant to plant.
“Overall, this is a small part of the frozen lobster product market, but for some separate plants, they do quite a bit of business in China. The export profile varies from plant to plant.”
Richard said processors have a higher bet on U.S. tariffs due to the highly integrated supply chain.
On March 4, the Donald Trump administration imposed a 25% tariff on almost all Canadian and Mexican imports, with a lower tax on Canadian energy. But last week, after days of market chaos, Trump signed an executive order delaying the next month that tariffs on these commodities, such as seafood, meet the original rule requirements under the free trade agreement between the United States, Canada and Mexico.
Richard said most of the lobster caught by Maine fishermen accounts for about 85% of the U.S. harvest and is treated by Canadian plants.
“We will continue to serve the market regardless of whether we have taxes or not…but obviously people are worried that it will affect the market and it may weigh on demand.”
Meanwhile, Stewart Lamont, managing director of Tangier Lobster Co., Ltd., said China's 25% tariff is seven percent tariffs and 9% VAT imposed by the country.
“It's important to say the least, and it's a time when we're already targeting U.S. tariffs,” Lamont said.
The company is just over an hour away from air cargo services at Steinfield International Airport in Halifax, and Lamont said it has been successful in its diversified export market for about 40 years. Currently, it has not shipped to the United States, about 15% to China.
“We've been trying to diversify, and all our eggs aren't sure,” he said.
However, some companies ship most of their live lobsters to China, which Lamont said will make things difficult because new markets won’t be available overnight.
“All of these things take time, money, marketing and creativity, so the pivot is more challenging than people think,” he said.
According to the Customs Commission of China's State Legislature, Canadian rapeseed oil, oil cakes and peas will increase tariffs by 100%, and another 25% will apply to pork and aquatic products.
& Copy 2025 Canadian Press
