Canada’s East Coast seafood industry is feeling relieved as the federal government has excluded U.S. fish and seafood products from the list of counter-tariffed items. The government announced this adjustment late Wednesday night, citing feedback as the basis for the change.
This decision followed the federal government’s move to impose counter-tariffs on $27.6 billion worth of U.S. goods in response to the new 50 per cent tariffs imposed by the U.S. over the weekend. Initially, many seafood products were included on the list, subject to a 25 per cent tax rate.
Industry leaders expressed concerns over the potential devastating impact the countermeasures could have had on the seafood business, which was unexpectedly dragged into the trade war. Gilles Thériault, former president of the New Brunswick Crab Processors Association, emphasized the relief felt by the Atlantic fisheries industry due to the removal of the tariff.
Nat Richard, executive director at the Lobster Processors Association, highlighted the heavy integration of the industry across the border. He mentioned that the imposition of a 25 per cent tariff would have made processing in Canada financially unviable, potentially leading to the early closure of numerous processing plants and significant job losses.
In addition to lobster, Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, pointed out that almost all seafood items imported by Canada were on the retaliatory tariff list, posing a significant threat to the industry. Joanne Losier, executive director of New Brunswick Crab Processors, expressed concerns about the potential repercussions on the Canadian seafood industry and the possibility of further tit-for-tat tariffs.
Nova Scotia Premier Tim Houston, in a statement to CBC News, acknowledged that they had raised concerns about the seafood tariffs with the federal government and welcomed the decision to remove them from the list. Despite this adjustment, the federal government emphasized its commitment to maintaining a proportional response to U.S. products. Certain products like copper wire, charcoal, plaster sheets, and tiles will face a 50 per cent tariff starting September 8 to uphold the dollar-for-dollar impact.
Minister of Finance François-Philippe Champagne stated during a news conference that the decision was made in the best interest of Canada following input from Canadians, without directly addressing the implications for the White House.