Canada pulls back on some tariffs after ‘feedback’ from seafood industry

Canada on Wednesday reversed some retaliatory tariffs it placed on the United States after facing backlash from the seafood sector. Canadian Fisheries Minister Joanne Thompson removed seafood and fish sector products from a list of proposed tariffs. In a statement, Canada’s Department of Finance said “select adjustments” were based on “feedback, to protect against broader economic harms.” The development means Maine’s lobster industry will no longer be forced to pay a 25% import fee. The change comes after Ottawa held a call with Canadian stakeholders on Tuesday. Stakeholders expressed outrage that they hadn’t been consulted about the tariffs targeting Maine’s seafood industry, and expressed concern that they would derail a multibillion-dollar trade system between Maine and Canadian businesses. Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, told officials he was “blindsided” by the news. “We are strongly supportive of our federal government protecting our national and economic sovereignty in these trade discussions,” he told Politico. “It’s just unfortunate that we were not consulted and able to provide advice that might have helped the federal government make good decisions.”Canada’s planned tariffs were set to take effect during the fall fishing season, when the country purchases roughly half of the Maine lobster. The move had stirred anger from politicians across the aisle, including Sens. Susan Collins (R-ME), Angus King (I-ME), and Democratic Maine Senate nominee Troy Jackson. Justin Maderia, co-head of New York-based direct seafood seller Lobster Boys, told MorningStar that 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. Maderia estimated that 80% of U.S. lobsters caught in Maine are shipped to Canada for processing.Ottawa’s reversal earned high praise from stakeholders on Thursday. “Keeping seafood tariff-free protects our shared supply chain and avoids unnecessary economic harm on both sides of the border,” Patrice McCarron, executive director of the Maine Lobstermen’s Association, said. “We urge both governments to continue protecting the long-standing tariff-free trade in lobster that benefits fishermen, businesses, and coastal communities throughout North America.”TRUMP’S PRO-FAMILY AGENDA HAS WON BIPARTISAN SUPPORT, BUT ECONOMIC ANXIETY CLOUDS GOP MIDTERM HOPESThe saga began when President Donald Trump imposed new 50% tariffs on about $20 billion worth of Canadian imports on Saturday. Ottawa swiftly retaliated with matching tariffs. After the refinements to Canada’s tariff list were made on Wednesday evening, it now contains 629 items, down from the original 800-plus goods issued on Tuesday.