Canadian Prime Minister Mark Carney announced the country has reached an agreement with Chinese President Xi Jinping that will cut Chinese tariffs on key seafood items like lobster and crab.
Canada has faced an additional 25 percent tariff in China on a range of seafood products including halibut, crabs, lobster, clams, and shrimp since 20 March 2025. The tariffs were made in response to a 100 percent Canadian tariff on Chinese electric vehicles and a 25 percent tariff on steel and aluminum products from China.
The CBC reported that the 25 percent tariff will now be removed on lobsters, crabs, and other goods starting 1 March 2026 through the end of 2026 in exchange for a deal that will allow up to 49,000 Chinese electric vehicles into the Canadian market, with a tariff rate of 6.1 percent.
“Canada expects China to accelerate the resumption of exports of Canadian beef, pet food, animal genetics, and other products to China,” a statement from the Canadian government said.
In a joint statement, the two countries said they “reaffirmed the principles and policies that have guided China-Canada relations.”
“Leaders committed to strengthening economic and trade partnership between China and Canada and welcomed progress in the negotiations to resolve trade issues,” the statement said. “The two sides committed to expanding bilateral trade, strengthening two-way investment, and deepening cooperation in diverse sectors of mutual interest.”
Tangier Lobster Owner Stewart Lamont told SeafoodSource his initial reaction to the news on tariffs was “surprised and generally very pleased.”
“I was very encouraged to see the People’s Republic and Canada re-engaged at the highest levels,” Lamont said. “I think for Canada it is important to try to re-establish relationships with all major markets in the world.”
China is one of Canada’s top trading partners for live, fresh, or chilled lobsters, and the country sent CAD 472 million (USD 339 million, EUR 292 million) worth of the product to China in 2024, according to Canada’s trade data portal.
Trade data also indicates the tariffs had an intense effect on the trade of lobster between Canada and China. According to the portal, Canada sent CAD 272 million (USD 195 million, EUR 168 million) worth of live, fresh, or chilled lobster to China in the period spanning January through October of 2025. That total was down 35 percent from the same period the prior year, when Canada sent CAD 418 million (USD 300 million, EUR 259 million) worth of live, fresh, or chilled lobster.
Lamont said the tariffs have been very impactful “in a bad way” to the lobster industry.
“Sales diminished by 30 percent or more, and those sales undertaken were at cost or less in many instances,” Lamont said. “So, I view this as a chance for a reset in the live lobster export business.”
Exports of live, fresh, or chilled crab also took a hit due to the tariffs. For the period spanning January to October 2024, Canada sent CAD 148 million (USD 106 million, EUR 91 million) worth of product to China. That number dropped to CAD 109 million (USD 78 million, EUR 67 million) in the same period of 2025, a drop of 26 percent.
Frozen and prepared or preserved crab took an even bigger hit.
According to trade statistics, Canada sent CAD 85 million (USD 61 million, EUR 52 million) worth of frozen or prepared crab to China in the period spanning January to October 2024. That total plunged 56.3 percent in 2025 to CAD 37.2 million (USD 26 million EUR 23 million).
Canada’s statement did not specify whether the tariff reduction would apply to all shellfish products, such as geoduck. Underwater Harvesters Association Executive Director Grant Dovey told SeafoodSource in March 2025 that the industry was bracing for the tariffs amid a year already marked by a drop in prices and exports to China.
