Chinese seafood tariffs will ‘destroy’ business, says N.S. company official

A seafood producer in Hacketts Cove, Nova Scotia is facing a dire situation as Chinese tariffs threaten to devastate his business. China’s decision to impose a 25% tariff on Canadian seafood, effective March 20, is in retaliation to tariffs imposed by Canada on Chinese-made electric vehicles, steel, and aluminum products last October. This tariff includes popular products such as lobster, crab, shrimp, and halibut.

Sam Gao, the president of Atlantic Sea Cucumber Ltd., expressed his concerns about the impact of these tariffs on his company. He had already been worried about the potential tariffs from the U.S., but the news of Chinese tariffs on Canadian seafood came as a shock. Atlantic Sea Cucumber exports products made with sea cucumber, a marine animal known for its health benefits in traditional Chinese medicine. The company’s largest markets are in the U.S. and China, making them particularly vulnerable to these tariffs.

Nova Scotia Fisheries Minister Kent Smith acknowledged the threat these tariffs pose to the seafood industry. Roughly 52% of Nova Scotia’s seafood exports go to the U.S., while 25% go to China. Smith mentioned that the province has set aside $200 million in the budget to help respond to these tariffs, but specific details on how this support will be allocated are still being worked out.

Gao expressed his concerns about competing with firms in Iceland and Norway if the tariffs make their products uncompetitive. He noted that while they have products in the U.S. and China currently, once those are sold, their prices will no longer be competitive. Smith mentioned that efforts are being made to diversify the fisheries market by exploring opportunities in other countries and increasing markets within Canada.

The live lobster sector is especially at risk due to these tariffs, with China being a significant consumer of Canadian live lobster. Geoff Irvine, the executive director of the Lobster Council of Canada, highlighted the challenges the lobster industry is facing as they prepare for the busy spring season. The uncertainty around prices and potential labor costs in the face of a 25% tariff on their products is making it difficult for companies to make decisions.

As the seafood industry in Nova Scotia braces for the impact of these tariffs, there is a sense of urgency to find solutions and support to mitigate the potential damage to businesses like Atlantic Sea Cucumber Ltd. The future of these companies relies on navigating through these challenges and finding ways to remain competitive in a changing market landscape.