Canada rapidly backtracks on US seafood tariffs

The change, just 24 hours after seafood was listed as one of the targets for new import duties, follows strong protest from the country’s aquaculture industry, especially those in the eastern half of the country.

 

The Canadian Finance department said earlier this week that it was listing more than 700 US products, including seafood, that would be subject to tariffs ranging between 15% and 50%, following the collapse of trade talks between the two countries last Friday. Each side has accused the other of wanting to impose unacceptable conditions on an agreement which had been aimed at ensuring free trade.

 

The United States sells a lot of fish to Canada, much of it lobster, thought to be worth US $880 million (nearly £650m). In return, however, Canada sells the vast majority of its farmed Atlantic salmon into the American market, at a value of up to CA $940 million (around £500m) a year. The US is also an importer of many other forms of Canadian fish.

 

The Ottawa finance ministry said: “Based on feedback, we have made select adjustments to protect against broader economic harms, including removing seafood and fish products from our list of counter tariffs.”

 

The “feedback” is thought to have been a storm of protest from the country’s aquaculture sector.

 

One of the strongest protestors was the Nova Scotia Seafood Alliance, which represents over 200 firms in the province including many fish farmers.

 

The Canadian national broadcaster CBC reports the alliance’s executive director, Kris Vascotto, warned Ottawa that member companies would have faced significant cost increases had the retaliatory tariffs remained in place. 

 

Commentators are saying that the double quick removal of seafood products underscores the speed with which the retaliatory list was drawn up, and the inherent difficulty of attempting to accomplish the twin aims of politically-targeted tariffs and dollar-for-dollar retaliation.

 

The big worry now is that Donald Trump, realising the importance of Canadia seafood exports, may now decide to include salmon and other seafood in his list of tariff targets.