Canada Pulls U.S. Seafood Off Retaliatory Tariff List

Dow Jones
Aug 28
 
 

OTTAWA--Canadian officials have removed U.S. seafood products from their list of retaliatory-tariff targets, a swift reversal likely fueled by anger from east-coast marine food firms and fear they would be subject to new American levies.

Canada's Department of Finance issued the notice late Wednesday on the X platform--less than 48 hours after the Canadian government released a list of hundreds of U.S. products that would be subject to tariffs ranging from 15% to 50%. Canada's retaliation is in response to the collapse of trade talks last week, resulting in a new Trump administration tariff of 50% on about $20 billion in Canadian goods.

Canada's retaliatory duties are set to be implemented on Sept. 8. Officials and businesses in both countries are bracing for a prolonged trade conflict with no immediate resumption of talks.

"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 finance ministry said in its social-media post. The ministry added it would still maintain retaliatory tariffs targeting about $20 billion of U.S. imports.

As a result of the change, Canada's retaliatory tariff list contains 629 items, down from the original 800-plus goods issued Tuesday.

Trade analysts said the presence of U.S. seafood products on the list--while relatively small in dollar value--indicated that Canada wanted to exert pressure on the Republican Party in Maine, where Sen. Susan Collins faces re-election in the November midterms. Collins had warned that Trump's trade policy as it pertains to Canada posed economic risks to her state.

Canada's industry minister, Melanie Joly, said applying pressure on Republican lawmakers was a factor in crafting the retaliatory-tariff list.

The Nova Scotia Seafood Alliance, which represents more than 200 firms in the Atlantic Canadian province, said it was thrilled with the government's quick response to its concerns.

Justin Maderia, co-head of New York-based direct seafood seller Lobster Boys, said Canadian officials failed to recognize the close integration between U.S. fishing catches and Canadian food-processing plants when they assembled the list of targeted products.

"They look really foolish and stupid, because they put tariffs on a product, and then realized that putting tariffs on U.S. lobsters was only going to hurt Canadian companies," Maderia said.

Maderia estimated that 80% of U.S. lobsters caught in Maine are shipped to Canada for processing.

"If they don't de-escalate this trade situation, there is going to be tariffs on lobsters coming down from Canada--and that is going to dramatically hurt the Canadian fishermen and U.S. consumers."

Mark Warner, a Toronto-based trade and investment lawyer, said Canada's 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."

Last week, the U.S. and Canada appeared headed for a trade pact whereby the Trump administration would drop its plan to slap 50% duties on certain Canadian goods, and sharply lower its tariffs on Canadian-made steel, aluminum and automobiles. The U.S. said the 50% tariffs are in response to alleged Canadian mistreatment surrounding U.S. automobiles, wines and spirits, and dairy products.

There was a partial thaw between the neighboring countries Thursday, with one of Canada's top trade officials welcoming a commitment from U.S. Trade Representative Jamieson Greer to withdraw demands that Ottawa claimed could weaken protections for the French language and French-Canadian culture.

Greer told the Canadian Broadcasting Corp. that U.S. officials had questions about Canada's efforts to compel U.S. streaming companies to promote and show more French-language programming on its platforms.

"This is something we talked about, but we showed a lot of flexibility," Greer said. "There is no way we would let a good deal go by for something like this."

Dominic LeBlanc, Canada's minister in charge of U.S. trade, said he was encouraged by Greer's remarks, and awaited "further constructive U.S. clarifications on their other positions" that might lead to a possible trade deal between the two closely integrated economies.

 
 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10