The government of Canada has removed fish and seafood products from its retaliatory tariffs, garnering praise from industry.
Canada announced a set of sweeping retaliatory tariffs on the U.S. following the collapse of trade talks, which resulted in the U.S. hitting Canada with tariffs as high as 50 percent when a deadline set in July came due. Canadian officials called the new tariffs necessary as a measure of protecting Canadian workers and industry.
Included among the items Canada was planning to hit with a 25 percent tariff starting 8 September was a long list of seafood items, including live fish, salmon products, tuna products, herring, tilapia, and lobster whether live or frozen.
However, in an updated announcement on social media, Finance Canada announced that to “protect against broader economic harms,” the government made selective adjustments to the tariff targets – including removing all seafood and fish products from the list of counter-tariffs.
“We are continually working with Canadian industries to assess the effectiveness of these measures, with a primary focus on industries that have been targeted by U.S. tariffs,” Finance Canada said.
In an official release, Finance Canada said talks with Canadian industries are ongoing.
“Government officials acknowledged the challenges and uncertainty that many Canadian businesses are experiencing due to actions taken by the U.S. They also emphasized that the government will continue to closely assess the effects on industries and the broader economy and respond as required to support Canadian businesses and workers,” Finance Canada said.
The Maine Lobstermen’s Association (MLA) quickly celebrated the news, calling it a relief to the industry and businesses that depended on trade with Canada. According to the MLA, Canada is one of the state’s most important markets during the fall fishery, with over half of all of Maine’s catch going to Canadian processors.
“Keeping seafood tariff-free protects our shared supply chain and avoids unnecessary economic harm on both sides of the border,” MLA Executive Director Patrice McCarron said in a release.
The MLA warned soon after Canada announced its seafood tariffs that the impacts to the industry would be severe and pushed against them.
“Maine lobstermen should not become collateral damage in a broader trade dispute. Losing access to such an important market at the height of our fall season could be devastating to fishermen and coastal communities,” McCarron said.
Canadian counterparts also said the tariffs could cause widespread negative effects. Lobster Processors Association Executive Director Nat Richard told the CBC it would have made processing economically impossible.
"I think we would have likely seen an early closure of a significant number of plants," he said.
Nova Scotia Seafood Alliance Executive Director Kris Vascotto told Radio-Canada almost every single seafood item was on a retaliatory tariff list and the new update has been a big relief for the industry.
"I'm just relieved, frankly, that we were able to find an accommodation here," Richard said. "I think that the right decision was made here."
While seafood has escaped tariffs for now, Canada reiterated it plans to maintain its dollar-for-dollar and rate-for-rate response on U.S. tariffs.
