Book 1, Tab A2 – Potential impacts of trade disruptions on Canada's fish and seafood sector analysis

Context

• On March 4, 2025, U.S. tariffs of 25 % on Canadian goods and 10 % on energy exports from Canada imported into the U.S. came into effect under the International Emergency Economic Powers Act (IEEPA). On March 6, 2025, President Trump issued an EO that exempts U.S. IEEPA tariffs on Canadian goods that normally enter the U.S. duty-free under the Canada-United States-Mexico Agreement (CUSMA), which includes Canadian harvested fish and seafood.
• Canada responded to the U.S. imposition of tariffs on Canadian goods on March 4, 2025, by imposing tariffs on $30 billion in goods imported from the U.S., effective March 4, 2025, and public consultation on a list of $200 billion additional goods.
• The only fish and seafood products on the $30 billion list are fish oil (imports from U.S. worth $85 million in 2023) and shrimps and prawns in air tight container ($6.3 million). The $200B list out for consultation includes 303 tariff lines for fish and seafood valued at $1.3B, e.g. lobster, salmon, shrimp, tuna, crab and halibut. DFO has seconded staff to Finance Canada's consultation process, so that seafood stakeholder input is fully captured in the analysis.
• On March 8, 2025, China announced the conclusion of the “anti-discrimination” investigation it initiated against Canada on September 26, 2024, and imposed retaliatory duties on 72 tariff lines effective March 20, 2025. This includes 49 aquatic products that will be subject to a 25 per cent tariff, including crab, shrimp, prawn, clams, lobster, sea cucumber, geoduck, and halibut.

Engagement with partners and stakeholders

• DFO is working closely with federal partners to respond to trade impacts on fish and seafood products. This includes GAC (lead on bilateral engagement with U.S. and China, trade policy, and Trade Commissioner Service); AAFC (lead on agriculture and food trade and Trade Commissioners, food processor issues); CFIA (lead on sanitary and phytosanitary certification); CBSA (implements tariff measures at borders); the Privy Council Office and Finance Canada.
• DFO is also working through bilateral and joint engagement mechanisms to dialogue with industry, provinces and territories and Indigenous partners, including sharing accurate and timely information on actions and clarifying impacts and supports.

Suggested key messages

• The tariffs imposed by the United States on Canadian goods on March 4, 2025, are unjustified and unreasonable.
• These tariffs are all the more unjustified given over the last month the federal government has made significant progress on the implementation of Canada's Border Plan to strengthen safety at the border.
• Working with provincial, territorial and industry partners, the Government of Canada's primary focus remains the removal of the U.S.' unjustified tariffs.
• Although the United States has delayed implementation of the tariffs on goods covered by the Canada-US-Mexico Agreement, Canada's counter-tariffs will remain in place until all tariffs are removed.

Responsive if asked about Chinese Tariffs:

• Canada does not accept the premise of China's investigation, nor of course its findings.
• Canada cannot ignore the threat posed by China's non-market policies and practices, which creates artificially lower production costs, significant market distortions, and an unequal playing field when competing with Chinese firms.
• The Government of Canada will always stand up for Canadian businesses and workers and defend them from the harmful effects of unfair trade policies.
• Canada remains open to engaging in constructive dialogue with Chinese officials to address our respective trade concerns.