The seafood industry on Canada’s East Coast is relieved as the federal government has excluded U.S. fish and seafood products from its list of counter-tariffed items. The adjustment was made in response to feedback received by the government. This decision followed the imposition of counter-tariffs on $27.6 billion worth of U.S. goods after the U.S. imposed 50% tariffs on similar goods due to failed trade talks.

The initial list included many seafood products subjected to a 25% tax rate. Industry leaders expressed concerns over the potential devastating impact these countermeasures could have had on the seafood business. Gilles Thériault, former president of the New Brunswick Crab Processors Association, stated that the Atlantic fisheries industry welcomed the removal of the tariff.

Nat Richard, executive director of the Lobster Processors Association, highlighted the heavy integration of the industry across borders. He mentioned that American-caught lobster is often processed in Canada during the off-season before being shipped back to the U.S. for sale. The threat of 25% tariffs would have made processing in Canada economically unviable, potentially leading to the closure of numerous plants employing hundreds of workers.

Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, warned 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 potential retaliatory tariffs from the U.S., emphasizing the importance of maintaining the current trade relations for products like snow crab.

Despite the removal of some tariffs, the federal government confirmed its commitment to maintaining a proportional response to U.S. products. New items, including copper wire and charcoal, have been added to the list to ensure a dollar-for-dollar impact. Minister of Finance François-Philippe Champagne emphasized that the decision was made in the best interest of Canada, following consultations with Canadians. The Minister did not directly address the implications of the decision on relations with the White House.