China Slaps 25% Tariff on Canadian Seafood
Keith Lusher 03.17.25
China will impose a 25% tariff on Canadian seafood, including lobster, crab, shrimp, clams, and halibut, starting March 20, 2025. This is payback for Canada’s October 2024 decision to impose tariffs on Chinese electric vehicles (100%) and steel and aluminum products (25%).
This comes at a terrible time for Canada’s seafood industry, which is already worried about possible U.S. tariffs on hold until April 2. With China and the U.S. buying 83% of Canada’s lobster exports in 2024, seafood producers across Atlantic Canada are deeply concerned.
“It just adds to the craziness we’ve been dealing with, the uncertainty,” said Nat Richard, who leads the Lobster Processors Association.
Market Impact
China buys a lot of Canadian seafood. Last year, China purchased 17.5% of Canada’s seafood exports, including about $525 million in lobster. Overall, China is Canada’s second-biggest buyer of fish and seafood after the U.S., spending $1.3 billion in 2024.
Kris Vascotto from the Nova Scotia Seafood Alliance called China’s move a “very strategic hit” on Atlantic Canada’s seafood industry. His group, which represents 135 processors and shippers, expects prices to bounce around wildly, hurting everyone from big companies to individual fishermen.
Bad Timing for Spring Season
These tariffs couldn’t come at a worse time, with spring fishing season just weeks away. Industry leaders are especially worried that U.S. tariffs might kick in during the middle of fishing season, which Richard said would be “very dangerous for the industry.”
Stewart Lamont, who runs Tangier Lobster Company in Nova Scotia, wasn’t shocked by China’s tariffs but said there’s been little time to prepare.
“We’ve hardly had time to prepare for the tariffs potentially coming from America,” Lamont said. “It’s a volatile, fluid, international market, so all of this is happening while the seafood industry has a lot on its plate.”
Looking Ahead
The industry is rushing to make backup plans. Companies are looking to sell more seafood to Europe, Southeast Asia, and within Canada to depend less on Chinese and American buyers. Industry groups are asking the Canadian government for emergency help, including possible subsidies or tax breaks to help weather the financial storm.
Some processors are working on creating higher-value seafood products that could help cover the increased costs while keeping profits steady. Regional seafood organizations are also talking about possibly delaying some fishing until they better understand how these tariffs will affect prices.
While these tariffs will cause short-term financial problems, experts think larger companies with diverse markets will survive without long-term damage, especially if they don’t last too long.
