Already hit by China, Nova Scotia’s seafood sector braces for upcoming U.S. tariffs
Nova Scotia’s seafood industry is facing uncertainty and market upheaval due to the recent tariffs imposed by China and the impending 25 per cent duty from the United States. These tariffs have left many in the industry feeling anxious about the future of their businesses.
Stewart Lamont, managing director of Tangier Lobster Company Ltd. on Nova Scotia’s Eastern Shore, expressed concern about the impact of the tariffs on the lobster sector. His company exports live lobster to 13 countries worldwide, and the current situation has led to increased calls from dealers looking to sell their lobster this spring. Despite the tariffs, demand remains high as there is a shortage of lobster on the market ahead of the upcoming spring seasons.
However, Lamont anticipates a drop in lobster prices once the U.S. tariffs come into effect and new catches are landed, increasing the supply. The wharf price for lobster currently stands at around $15 per pound but is expected to decrease significantly in the future.
China is Canada’s second-largest fish and seafood export market after the U.S., with $1.3 billion in products shipped to China in 2024. In Nova Scotia, 52 per cent of seafood exports, totaling $1.2 billion, went to the U.S., while 26 per cent, or $614 million, went to China. Lobster alone accounted for $541.8 million in exports to the U.S. and $458.7 million to China.
Osborne Burke, general manager of Victoria Co-operative Fisheries Ltd. in Cape Breton, highlighted the concerns in the crab fishery due to the heavy reliance on the U.S. market. The pending U.S. tariffs could lead to a 25 per cent decrease in crab prices, impacting fishers who are currently receiving about $6 per pound.
The crab season is underway in northeastern Cape Breton, with the fishery set to start in the Gulf of St. Lawrence and off the northern tip of the island soon. Burke emphasized the need for the industry to diversify its markets to reduce dependence on the U.S. market. While significant changes may take time, efforts are being made to shift towards a more balanced market distribution.
Crab is a significant export from Nova Scotia, with $158 million worth of crab shipped to the U.S. market last year, while $16 million went to China. Other notable seafood exports from the province include scallop, halibut, clams, shrimp, and sea cucumber, a niche product primarily exported to China.
As the seafood industry navigates the challenges posed by tariffs and market fluctuations, stakeholders are working to adapt and find new opportunities to sustain their businesses in the long term.
