The waters are looking rough for Nova Scotia’s seafood industry. With China imposing a 25% tariff on Canadian seafood, businesses that rely on exports to one of their biggest markets are bracing for impact. For companies like Atlantic Sea Cucumber Ltd., the consequences could be devastating.
This trade dispute—sparked by Canada’s own tariffs on Chinese-made goods—has sent shockwaves through the industry, leaving business owners, workers, and policymakers scrambling for solutions. But with both the U.S. and China tightening trade restrictions, what does the future hold for Canada’s fisheries?
A Market on the Brink: How Chinese Tariffs Could Sink Seafood Exports
For years, China has been a lifeline for Canadian seafood exports, particularly for high-value products like lobster, crab, shrimp, and sea cucumber. Now, with a massive 25% tariff looming, that once-thriving trade relationship is in jeopardy.
- China accounts for 25% of Nova Scotia’s seafood exports.
- Live lobster alone generated $450 million in sales to China last year.
- Sea cucumber, a prized delicacy in Chinese medicine, has limited demand outside of China and the U.S.
For Sam Gao, president of Atlantic Sea Cucumber Ltd., the situation is dire. His company’s two largest markets—China and the U.S.—are both being hit with tariffs. Competing with Icelandic and Norwegian firms, which face no such trade barriers, will be nearly impossible.
"It will totally destroy our business," Gao warns.
The problem extends beyond sea cucumber. If Canadian seafood products become too expensive for Chinese consumers, exporters will struggle to move their inventory—forcing them to lower prices, cut jobs, or shut down entirely.
Caught in the Crossfire: How Trade Wars Are Hurting Canadian Fisheries
This crisis isn’t happening in a vacuum. The Chinese tariffs are a direct response to Canada’s decision last October to impose levies on Chinese-made electric vehicles, steel, and aluminum. Now, seafood businesses are paying the price for a broader geopolitical dispute.
Meanwhile, the U.S. under President Donald Trump is also threatening new seafood tariffs. That means Nova Scotia’s fishing industry—which sends more than half of its exports south of the border—could be hit with a double economic blow.
For seafood producers, this uncertainty makes long-term planning nearly impossible.
- Should they invest in expanding to new markets, despite the high cost?
- Will the tariffs be lifted in months or linger for years?
- Can they absorb the price hikes, or will they have to pass them on to customers?
According to Geoff Irvine, executive director of the Lobster Council of Canada, businesses are struggling with basic operational decisions. “What the price is going to be, how much, what sort of labour do we need to bring in—these are all decisions that are painfully difficult when you're facing a potential 25% higher price to your customers," he told CBC News.
Can Canada Diversify Its Seafood Markets?
The Nova Scotia government is scrambling to find solutions. Fisheries Minister Kent Smith acknowledges the threat, calling it “incredibly worrisome.” But as of now, the province has no clear plan for how it will spend the $200 million set aside to help the industry cope with the tariffs.
Efforts to diversify export markets have been underway, with trade missions targeting Europe and other parts of Asia. But for niche products like sea cucumber, demand outside of China is virtually nonexistent. Expanding to new markets would require significant investment in marketing and consumer education—costs many struggling businesses simply can’t afford.
And while increasing domestic seafood sales sounds like a logical solution, it’s not that simple. Canadian consumers don’t eat sea cucumber the way Chinese consumers do. Even lobster, while popular, relies heavily on export demand to keep prices stable.
What’s Next? The Industry’s Uncertain Future
With just days before the tariffs take effect on March 20, Nova Scotia’s seafood industry is in survival mode. The stakes are high:
- Will Canada negotiate a deal to reduce tensions with China?
- Can businesses withstand the price hikes and stay competitive?
- Will government aid come fast enough to prevent widespread layoffs?
Right now, the only certainty is uncertainty. For companies like Atlantic Sea Cucumber Ltd., time is running out.
The question remains: Will Canada’s seafood industry weather the storm—or will it be left adrift in a sea of economic uncertainty?