Canada’s lobster exporters feel the pinch as China’s tariffs snip prices

Retaliatory tariffs from China on Canadian seafood, particularly lobsters, have led to a dramatic drop in price as exporters work to keep supply chains moving

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After new tariffs from China, the price of Canadian lobster is expected to drop as exporters attempt to keep supplies flowing. Photo: AP

Published: 8:00pm, 19 Mar 2025

As new tariffs from China take effect, the price of Canadian seafood like lobsters is poised for a severe slump as the North American country’s exporters – trapped in simultaneous tariff wars with China and the United States – slash prices to keep up their shipments to the enormous Chinese market, industry insiders said.

“Many Canadian processors and exporters [expect] seafood prices in Canada will drop roughly 25 per cent to account for the additional tariffs,” said Alexander Schultz, founder of the Hong Kong-based distributor Turnbury.

As Canadian seafood companies have obligations to their contracted fisherman, keeping their supply chains moving is “very important”, said Schultz, whose company sources Canadian seafood for shipment to China through freight forwarders. Because China is “a very large buyer”, he added, Canadian companies are likely to adjust their prices and “keep the product moving”.

Earlier this month, China announced a 100 per cent tariff would be placed on Canadian rapeseed oil, oil cakes and peas, and a 25 per cent duty would be applied to Canadian aquatic products and pork. The additional import taxes, taking effect Thursday, were imposed in retaliation to Canada’s duties on Chinese-made electric vehicles, steel and aluminium, revealed in October.

On the other hand, Canadian exporters are facing a double whammy as the US will also impose a 25 per cent tariff on Canadian seafood exports that is set to kick off on April 2.

Turnbury handles products from large international firms as well as family businesses and sells to wholesalers. One of the main commodities the company handles is live US and Canadian lobster, shipping over 1 million pounds per year.

“The prices are on the higher side now, which many in Canada say needs a correction,” Schultz said, adding he had spoken with several processors and exporters at this week’s Boston Seafood Show.