Seafood counter-tariffs

Canada backtracks on seafood counter-tariffs

Ottawa had initially intended to slap 25 percent levies on U.S. seafood imports as of Sept. 8.

By Nick Taylor-Vaisey

Canada’s government has pulled back on retaliatory tariffs targeting Maine seafood.

Following feedback from an anxious Canadian seafood sector that warned the government about the industry’s vulnerability, Canadian Fisheries Minister Joanne Thompson announced late Wednesday that Ottawa has made “targeted adjustments” to its tariff list — and removed seafood and fish sector products altogether.

The heavily integrated cross-border seafood trade had so far evaded tariffs. Earlier this week, Ottawa intended to slap 25 percent levies on U.S. seafood imports as of Sept. 8.

In a call Tuesday for stakeholders affected by the tariffs, several industry representatives peppered senior government officials with questions about the government’s decision to target their sector, why they weren’t consulted in advance and what happens if the Trump administration slaps counter-tariffs on Canadian seafood.

The sector’s cross-border trade is worth more than $5 billion a year, including Canadian exports that add up to about $4 billion. Seafood products often travel back and forth; Maine lobsters are regularly processed in Canada before they’re shipped back for consumption.

Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, told the call — which included hundreds of tariff-impacted stakeholders — that he was “blindsided” by the news that Ottawa dragged his sector into the trade war, according to a recording of the briefing obtained by POLITICO.

In an interview with POLITICO, Vascotto said that he generally backs Ottawa on the trade file — but nobody reached out to his sector before unveiling counter-tariffs.

“We are strongly supportive of our federal government protecting our national and economic sovereignty in these trade discussions,” he said. “It’s just unfortunate that we were not consulted and able to provide advice that might have helped the federal government make good decisions.”

Nick Leswick, the deputy minister of finance, was the most senior public servant on the Tuesday call. He was joined by Patrick Halley, the finance department’s lead on international trade, and Scott Winter, the director general for trade policy.

Also on hand: Martin Moen, the Global Affairs Canada senior bureaucrat who chairs the interdepartmental Canada-U.S. Trade and Economic Task Force.

The sector reps repeatedly asked officials for a game plan if the Trump administration layers on pain with counter-tariffs. Each time, officials promised a follow-up meeting.

“All I can say is the message is heard loud and clear,” one official said.

Ottawa is offering relief to tariff-exposed sectors in the form of remission payments and says that workers put out of a job will be able to access beefed-up income support measures.

Maine’s lobster sector was also bracing for impact. About half of the annual catch is processed in Canada.

In a statement, Sen. Angus King hadwarned of “devastating consequences” as the lobster trade gets more expensive for Mainers — and could have worsened if Trump responded with counter-tariffs. “If the president doesn’t relent, this hammer blow to hardworking Maine people,” King said, “would devastate the Maine lobster industry and leave many of these hardworking people literally high and dry.”