Maine lobster will be exempt from retaliatory Canadian tariffs as tensions rise with our neighbor to the north.
Finance Canada made the announcement late Wednesday night, saying the decision to remove seafood, including lobster, from its list of about $20 billion in dollar-for-dollar tariffs was intended to limit broader economic harm to Canadian businesses.
The state’s lobster industry greeted that news with relief Thursday morning, with Patrice McCarron, the executive director of the Maine Lobstermen’s Association, saying that the move “avoids unnecessary economic harm on both sides of the border.”
“We appreciate Canada’s decision to listen to the concerns raised by the seafood industry and remove seafood from these tariffs. We urge both governments to continue protecting the longstanding tariff-free trade in lobster that benefits fishermen, businesses and coastal communities throughout North America,” McCarron said in a statement.
Trade talks between Canada and the U.S. broke down over the weekend, and on Monday, President Donald Trump raised the stakes by threatening 50% tariffs on key Canadian exports, such as Canadian vehicles, auto parts and steel.
Then, on Tuesday, the Canadian government issued retaliatory tariffs, effective Sept. 8. Under that scheme, Maine lobster would have a 25% import duty when crossing the border into Canada.
That would have hit the key fishery hard, because about half of the state’s catch is exported to Canada for processing.
The industry already has faced headwinds in recent years, including a four-year decline in landings. After factoring inflation, Maine lobstermen saw their worst catch last year since 2008.
Climate change also is expected to force lobsters to continue a northward migration toward Canadian waters. The Gulf of Maine is warming faster than 99% of the world’s oceans.
Despite the falling catch and value, lobster remains the king of Maine’s fisheries, accounting for nearly 75% of the more than $619 million worth of seafood fishermen hauled in last year.