‘Whoa, whoa’: Why counter-tariffs on U.S. seafood were scuttled

Canada has withdrawn a planned 25‑percent tariff on American seafood that was set to take effect on September 8, after a 36‑hour period of industry pressure and government review.

The counter‑tariff list was issued by the Carney government as a response to President Donald Trump’s 50‑percent duties on roughly $28 billion of Canadian goods. The list, published late last month, included a sweeping 25‑percent duty on a wide range of U.S. seafood products, including lobster.

Wayne Long, the Member of Parliament for New Brunswick and the federal secretary of state responsible for the Canada Revenue Agency and financial institutions, said the decision to place seafood on the list was made “in haste” and “was not fully thought out.” He added that the policy moved from discussion to implementation “literally in hours.”

Industry groups in Atlantic Canada, including a coalition of twelve regional east‑coast groups, sent a letter to Prime Minister Mark Carney expressing “grave concerns” about the impact on a processing sector that imports hundreds of millions of dollars of American seafood. Calls with provincial premiers and federal cabinet ministers followed, prompting the government to reverse the tariff within 36 hours.

Long explained that the government had been “looking at different sectors” to find a reciprocal target, citing steel, aluminum, autos and softwood lumber as examples. He said the seafood sector had not been fully vetted and that the decision was “taken where people don’t really see the unintended consequences.” “We do listen and we’re not afraid to pivot,” he said.

To mitigate the impact of the trade dispute, the federal government has made available up to $3 million in non‑repayable funding for Canadian companies to offset sudden supplier price hikes or to finance capital investments that help them enter new markets. The Business Development Bank of Canada has also expanded a $500 million liquidity stream to support small and medium‑sized businesses affected by U.S. tariffs.

Brunswick News reports that 31 New Brunswick companies received a combined $18 million in non‑repayable tariff‑relief money in the first response round. Recipients include the province’s largest seafood company, Ganong’s chocolate factory, Moosehead, Cookes, Crosbys and JDI.

Long, who has 17 years of experience in the aquaculture industry and previously served as president of Scotia View Seafood and product manager at Stolt Sea Farm, said the sector’s exposure to U.S. markets is significant. “We need to help these businesses pivot, develop new markets, and create value‑added products,” he said.

The decision to drop the seafood tariffs reflects Canada’s broader strategy to manage the trade war with the United States while supporting affected industries.

Article and image source: tj.news