China tariffs on Canadian seafood add to trade uncertainty

China announced the retaliatory tariffs in response to the Canadian surtax of 100 per cent on all Chinese-made electric vehicles, and of 25 per cent on steel and aluminum.

China’s intent to slap 25 per cent tariffs on Canadian seafood products adds another layer of uncertainty to an industry already threatened by U.S. duties, say sector representatives in Atlantic Canada.

China announced the retaliatory tariffs on Saturday in response to the Canadian surtax of 100 per cent on all Chinese-made electric vehicles, and of 25 per cent on steel and aluminum.

And while 25 per cent U.S. tariffs on Canadian seafood and other goods are on pause until April 2, the Chinese duties are to take effect March 20 on a long list of products like lobster, snow crab and shrimp.

In an interview Monday, Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, called China’s move a “very strategic hit” on Atlantic Canada’s fish and seafood sector.

“This is going to present itself as a challenge, there’s no doubt,” said Vascotto. “Essentially the landscape has fundamentally changed. The announcement is yet another clear demonstration that we’ve seen over the last few months that trade actions have reactions.”

Vascotto, whose organization represents 135 shore-based processors and shippers, said it’s expected that the resulting price volatility will affect the supply chain “right down to the harvester.”

He said the Chinese duties will hit lobster and snow crab as well as niche products such as sea cucumber, whelk and prawns.

“Somehow these tariff costs will have to be absorbed in order for us to keep moving product,” Vascotto said. “We can definitely expect a fairly volatile season coming up.”