Canadian seafood exporters are facing significant turmoil as recent decisions from China threaten to cripple the industry. The Chinese government announced it would impose a hefty 25% tariff on Canadian seafood imports, effective March 20, 2025. This decision serves as retaliation for Canadian tariffs previously placed on Chinese electric vehicles, steel, and aluminum.
According to Alberto Wareham, chair of the Fisheries Council of Canada and president of Icewater Seafoods Inc., the tariffs could spell disaster for fisheries reliant on the lucrative Chinese market. Wareham explained, "The Chinese tariffs coming on top of the potential U.S. tariffs is devastating for many of our members." The tariff list includes over 40 products, prominently featuring lobster, crab, shrimp, and halibut—staples of the Canadian seafood industry.
Wareham highlighted the extent of the impact, noting, "16% of Canadian seafood gets exported to China, and 67% gets exported to the U.S. That means 83% of all seafood exported from Canada would be tariffed by April 2." The timing is particularly unfortunate, as it coincides with proposed U.S. tariffs on all Canadian goods, set to take effect just days after China's tariffs.
The potential fallout from these trade decisions has companies on edge. Wareham described the situation as untenable, stating, "A lot of companies have a big problem here. We need the government of Canada support to find a way to keep these businesses going." Many producers fear the long-term consequences of losing access to the Chinese market, as pivoting markets on short notice is virtually impossible.
Danny Dumaresque, president of Labrador Gem Seafoods, echoed these sentiments. While his company does not sell products to China directly, he understands the market's importance to many peers within the province and the broader Canadian fishing community. He noted, "The slack from the United States market was being picked up by China, and now of course, we appear to be slammed shut." Dumaresque expressed concerns about alternative markets, particularly Hong Kong, stating, "One of the major concerns I got now is whether this Chinese tariff is actually going to apply to Hong Kong. I have been in communication with companies over there. And now I don't know if there's any point."
Adding to the pressure, Saskatchewan Premier Scott Moe has publicly blamed the federal Liberal government for what he calls "devastate Chinese tariffs on Canadian canola and seafood." During recent press conferences, he laid out his frustrations, contending, "The new tariffs could decimate Saskatchewan’s canola sector 'in a matter of weeks, not months,' and warns of similar damage to Atlantic Canada’s seafood industry."
Moe stressed the importance of swift action by the federal government to mitigate the effects of these tariffs. He stated, "We need to reach out to federal cabinet ministers, then build support with the Atlantic provinces and Manitoba, who are also feeling the pressure from the Chinese tariffs." This sentiment resonates as officials recognize the significant economic challenges looming over growers and fishers across the nation.
The Fisheries Council of Canada’s warnings come amid broader struggles between Canada and China, reflecting the complex balance of international trade and diplomacy. The stakes are high, not just for individual businesses but for the very fabric of communities reliant on the fishing industry.
The details surrounding the tariffs exhibit the volatility of international relations and trade policies. The seafood sector, which employs thousands across Canada, now faces unprecedented challenges with these barriers. Players within the industry are calling for urgent governmental intervention, emphasizing the need for strategies to overcome the acute crisis.
For now, the Canadian fishery industry waits anxiously as the clock ticks down to the implementation of these tariffs. With livelihoods on the line and the specter of substantial financial losses looming large, the need for swift and decisive action has never been more apparent. The outcomes of these decisions will shape the future of Canadian seafood exports and the communities tied to this heritage industry.