The Canadian seafood industry in the East Coast is feeling relieved as the federal government has eliminated U.S. fish and seafood products from the list of items subject to counter-tariffs.
This decision was announced by the government late on Wednesday, citing adjustments made based on feedback received.
The change followed the federal government’s imposition of counter-tariffs on $27.6 billion worth of U.S. goods in response to new 50 per cent tariffs imposed by the U.S. over the weekend on a similar range of goods after trade talks collapsed.
The initial list primarily targeted seafood products, subjecting them to a 25 per cent tax rate.
Finance Minister François-Philippe Champagne explains that Canada’s removal of counter-tariffs on U.S. fish and seafood is in the country’s best interests. The federal government revised the tariff list, set to take effect on Sept. 8, after considering feedback from Canadians.
Concerns were raised by industry leaders about the potential devastating impact of these countermeasures on the seafood business, which was unexpectedly dragged into the trade conflict following Tuesday’s announcement.
Gilles Thériault, former president of the New Brunswick Crab Processors Association, expressed relief on behalf of the entire Atlantic fisheries industry over the removal of the tariff from the list.
Nat Richard, executive director at the Lobster Processors Association representing 25 processors in the Maritimes, highlighted the significant cross-border integration within the industry.
Given the short Canadian lobster fishing season, American-caught lobster is often sent to Canadian processing plants during the off-season before being exported back to the U.S. for sale.