HALIFAX — Nova Scotia's significant lobster industry is poised for a challenging period as it navigates the ramifications of tariffs imposed by China and anticipates a similar 25 percent duty from the United States. The situation is particularly pressing for those in the seafood sector, as they brace themselves for the economic impacts of these trade barriers.
China's tariffs on Canadian seafood took effect on March 20, 2025, creating immediate concerns among local fishers and processors. Meanwhile, the U.S. tariffs are expected to commence shortly, causing further anxiety given the vital role that exports play in the region's economy. Stewart Lamont, managing director of Tangier Lobster Company Ltd. situated on Nova Scotia's eastern shore, expressed that the industry is "incredibly anxious" while monitoring how these tariffs will impact prices on the market.
Current market dynamics reveal that demand for lobster remains high despite the Chinese tariffs. This heightened demand is attributed to a scarcity of lobster in advance of the upcoming spring seasons. Despite this current strength, Lamont predicts that the wharf price, which is presently hovering around $15 per pound, is expected to decline as the U.S. tariffs come into effect. This anticipated price drop is further compounded by the anticipation of increased supply as new catches are landed by local fishers.
Additionally, the concerns surrounding the tariffs extend beyond just the lobster industry. Osborne Burke, general manager of Victoria Co-operative Fisheries Ltd. in Cape Breton, voiced worries about the potential impact on crab fisheries. He noted that a majority of crab exports are directed towards the United States, making the pending tariffs particularly alarming for this sector, which is vital to Nova Scotia's economy.
Recent statistics from the Nova Scotia government highlight the economic significance of the seafood industry in the province. In 2024, Nova Scotia exported $1.2 billion in seafood to the United States and $614 million to China, with lobster being the predominant export to both countries. Crab holds the position of the second largest export to the U.S. and the fourth largest to China, underscoring its importance in the overall seafood market.
As the lobster and crab industries in Nova Scotia confront the ramifications of these tariffs, the outlook remains uncertain. Local stakeholders are nervously watching market trends, hoping for a balance that will allow them to sustain their operations amidst the pressures of international trade policies. The coming weeks will be critical in determining how these tariffs will reshape the landscape of seafood exports in Nova Scotia and beyond.
The original source of this report was The Canadian Press, which published the article on March 29, 2025.
