Chinese seafood tariffs will destroy business, says N.S. company official

A Hacketts Cove, N.S., seafood producer fears the looming introduction of Chinese tariffs could have a devastating effect on his business.

China has said it will impose a 25 per cent tariff on Canadian seafood effective March 20 in retaliation for levies Canada introduced in October on Chinese-made electric vehicles, steel and aluminum products. The list of over 40 products facing the tariff includes lobster, crab, shrimp, halibut and more.

Sam Gao, president of Atlantic Sea Cucumber Ltd., said he was already concerned about the 25 per cent tariffs U.S. President Donald Trump has been threatening since he took office in January. But he wasn't expecting the announcement earlier this month that China was also going to slap tariffs on Canadian seafood.

"It will totally destroy our business," said Gao, whose company exports products made with sea cucumber, a small marine animal with leathery skin known for its health benefits in traditional Chinese medicine. Its largest markets are the U.S. and China.

Nova Scotia Fisheries Minister Kent Smith said Wednesday that it's too early to share specifics on how $200 million set aside in the 2025-26 provincial budget to help respond to tariffs will be spent. 

"We don't know exactly what that support looks like at the moment. It's a bit premature as there are no tariffs in place at the present time," said Smith in an interview. "We're certainly keeping a close eye on it. We've had ongoing discussions with industry and we'll be there to support as much as we can."

In a statement, Fisheries and Oceans Canada said it would support and defend Canadian businesses affected by the tariffs.

"The Government of Canada will always stand up for Canadian businesses and workers, and defend them from the harmful effects of unfair trade policies," read the emailed statement. "We remain open to engaging in constructive dialogue with Chinese officials to address our respective trade concerns."

Expanding to other markets

Gao said he is concerned about Atlantic Sea Cucumber's ability to survive tariffs and compete against firms in Iceland and Norway.

"We have some products in the U.S. and China at the moment in the warehouse. But after we finish that, our price will be totally not competitive," he said.

Smith said roughly 52 per cent of Nova Scotia seafood exports go south of the border and 25 per cent go to China, making the threat of tariffs "incredibly worrisome" for the industry.

He said he's been on multiple trade missions to Asian and European countries looking to diversify the fisheries market, and his department is also focusing on increasing markets within Canada.

Gao, though, said the sea cucumber is not typically eaten in Europe or Canada, meaning his company would have to invest in marketing and "market education," something it can't afford to do while staring down the threat of going out of business.

Lobster industry making difficult decisions

Smith said the tariffs are especially troublesome for the live lobster sector. 

"[China] purchased about $450 million worth of Nova Scotian live lobster and so the tariff has the potential to negatively impact that product the most," he said. 

Geoff Irvine, executive director of the Lobster Council of Canada, told CBC's Information Morning Halifax the tariffs pose a significant challenge to the lobster industry, especially as companies plan for the busy spring season.  

"What the price is going to be, how much, what sort of labour do we need to bring in to produce what we're going to sell — these are all decisions that are painfully difficult when you're facing a potential 25 per cent higher prices to your customers," he said.