Canadian lobster industry officials say U.S. tariff threat cause for even more diversified markets

The potential effects of tariffs imposed by the United States on Canada’s lobster industry are a cause for concern, according to officials. While no action has been taken by President Donald Trump as of now, the threat alone highlights the importance of diversifying markets.

Geoff Irvine, the executive director of the Lobster Council of Canada, emphasized the need for proactive measures in response to the looming threat of tariffs. He mentioned ongoing efforts to lobby U.S. officials, with support from the National Fisheries Institute representing the American seafood industry.

One positive aspect for the lobster sector at the moment is the limited inventory during the winter season. However, any prolonged tariffs could impact the industry significantly, especially as the spring season approaches.

Although the live lobster market has diversified to include China as a major market, the frozen market remains heavily reliant on American buyers. Approximately 75% of Canada’s frozen lobster exports go to the U.S., driven by strong demand in the retail and food service sectors.

Irvine expressed concerns about the potential impact of tariffs on prices and availability, noting that it could have ripple effects throughout the sector. He emphasized the need to continue diversifying markets, citing China, Europe, South Korea, and the Middle East as promising areas for growth.

The Lobster Processors Association echoed these sentiments, highlighting the interconnected nature of the trading relationship between Canada and the U.S. Any disruptions could have severe consequences on both sides of the border.

In conclusion, the threat of tariffs serves as a reminder of the importance of market diversification for the lobster industry. While challenges lie ahead, continued efforts to explore new markets and reduce reliance on the U.S. will be crucial for the industry’s long-term sustainability.