The seafood industry on Canada’s East Coast is feeling relieved as the federal government has removed U.S. fish and seafood products from the list of items subjected to counter-tariffs. This decision was announced late Wednesday night following feedback received by the government.

The initial move to impose counter-tariffs on $27.6 billion worth of U.S. goods came after the U.S. imposed 50% tariffs on a similar range of goods when trade negotiations broke down. Many of the items on the original list were seafood products, taxed at a 25% rate.

Industry leaders were concerned about the potential devastating impact of these countermeasures on the seafood business, which had not been part of the trade war until the recent announcement. Gilles Thériault, former president of the New Brunswick Crab Processors Association, expressed relief that the tariff on U.S. seafood was lifted.

The seafood industry in Canada is closely intertwined with the U.S., with American-caught lobster often processed in Canadian plants before being sent back to the U.S. for sale. Nat Richard, executive director at the Lobster Processors Association, stated that a 25% tariff would have made processing in Canada economically unviable, potentially leading to early closures of processing plants employing hundreds of workers.

Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, highlighted the broad impact the retaliatory tariffs would have had on imported seafood items. Concerns were also raised about the potential for further tit-for-tat tariffs from the U.S. side.

Nova Scotia Premier Tim Houston, along with industry representatives, had voiced concerns about the seafood tariffs to the federal government earlier in the week. The decision to remove seafood products from the list was welcomed by Houston.

While some measures were rolled back, the federal government reiterated its commitment to maintaining a proportional response to U.S. products. Minister of Finance François-Philippe Champagne emphasized that the decision to update the list was made in the best interests of Canada, following feedback from Canadians.