Tariff turmoil: Canadian seafood farmers call for government support amid US levy concerns

The US’ 25% tariff on Canadian products will have “devastating” impacts on food security, Canada’s seafood farmers have warned. If implemented, the taxes will make it harder for US and Canadian consumers to access healthy and fresh protein, especially amid the surge in food prices due to years of inflation.

These concerns unfold against the backdrop of ongoing trade tensions between the US, Mexico, and China. In response to tariffs introduced by the Trump administration, the countries are imposing retaliatory tariffs on essential food imports, including nuts, soybeans, alcoholic beverages, chicken, wheat, and corn.

 To support Canadian’s seafood farmers, the Canadian Aquaculture Industry Alliance is now calling on the government to provide new funding to support producers and urges the sector to strengthen domestic production.

“In the face of these tariffs, our opportunity in Canada is to first strengthen our production at home. We need the economy firing on all cylinders,” notes the alliance.

Need for policy overhaul

The alliance stresses that some government policies at the federal and provincial levels are making it harder for seafood farming to grow and need to be fixed “immediately.”

For instance, the BC Salmon Farming Ban, under which the government wants to phase out or ban salmon farming in British Columbia, is “without scientific foundation.” The ban puts 4,500 jobs at risk, especially for coastal and Indigenous communities. Moreover, activists are now trying to use this ban to block fish farming in Atlantic Canada.

The organization also highlights the Transport Canada “Safe Manning” proposal for ships that require fishing boats to have four crew members instead of two or three, without industrial consultation. This could lead to spikes in operating costs at a time when not enough skilled workers are available.

Additionally, the government’s proposed Marine Protected Areas (MPA) and National Marine Conservation Areas (NMCA) would “cut off” significant areas for fish harvesters and fish farmers, reducing seafood production in Canada.

Finally, the proposed changes to Conditions of License for BC shellfish farmers will ban shellfish farming in some areas “without scientific justification.” This could reduce Canada’s seafood output.

Transport Canada’s “Safe Manning” proposal raises required crew members on fishing boats from 2-3 to 4, leading to increased costs.

Caution in retaliatory tariffs

The alliance is urging the federal government to immediately provide seafood producers with marketing support as well as practice caution while imposing counter-tariffs.

They are requesting new funding for domestic marketing initiatives, along with increased flexibility for international marketing efforts. The allocated funds would be used to market any “stranded product” to Canada to support the sector’s fit-for-purpose “Choose Canadian Seafood” campaign.

“Finally, we ask the Government of Canada to carefully consider the impacts of counter-tariff, retaliatory measures,” states the alliance.

Tariff troubles

Besides the US, China is also hitting Canadian seafood with a 25% levy on pork and some seafood imports from March 20. Last year, Canada imposed a 100% tax on electric cars and 25% on steel and aluminum from China.

According to a list from the Canadian government, crab, shrimp, prawn, clams, and lobsters are some of the seafood products impacted.

Nat Richard, executive director of the Lobster Processors Association in Canada says China’s tariffs only adds to the “craziness” the sector is dealing with caused by the unpredictability in trade with the US.

He believes the biggest concern is that US tariffs will hit in the middle of the upcoming spring fishing season.

Geoff Irvine, executive director of the Lobster Council of Canada, agrees that the threat of tariffs makes planning for the spring fishing season tough, since the US is Canada’s biggest customer for lobster exports.

Meanwhile, economists have expressed exasperation over Trump’s on-again-off-again approach to trade policy, after threatening 25% tariffs on product imports from Canada and Mexico and removing them temporarily for a second time last week. This is making it difficult to forecast growth, inflation, and interest rates.

The International Monetary Fund (IMF) also recently warned that if the US tariffs on Mexico and Canada persist, they will have a significant negative impact on both economies owing to the deep economic integration between these countries and the US.