President Trump’s recent decision to impose 25 percent tariffs on imports from Canada and Mexico and 10 percent on Chinese goods will affect many industries.
For the U.S. seafood industry, mainly focusing on lobstering, the new trade policies have sparked serious concerns about supply chain disruptions and economic consequences. Trump announced the tariffs on Saturday, February 1, and said they would go into effect on Tuesday, February 4.
According to an article posted by Reuters, the tariffs are aimed at protecting American industries and reducing trade deficits, but the initial impact on Maine’s lobster industry could be severe. With Canada as a key trading partner and an essential link in the lobster supply chain, these tariffs could jeopardize longstanding business relationships and make it harder for Maine lobstermen to compete internationally.
The lobster industry in the U.S. and Canada is deeply connected. Canadian processors handle a significant portion of the lobster caught by American fishermen, and in turn, much of the product is exported to global markets. Industry leaders fear increased costs due to tariffs will create instability for American harvesters and Canadian partners. Geoff Irvine, executive director of the Lobster Council of Canada, told Spectrum Local News, “These tariffs, if they actually happen, will badly impact Maine harvesters and the Maine lobster sector just as it will impact Canadians.”
Lobstermen from Maine have commented on the Facebook group All Things Lobstering, which has almost 30,000 members, including fishermen from around the world, fans of lobster, and other fishing community members. “Canada has a capacity advantage due to major investments in processing infrastructure. In 2018, Canada had about 240 processors, compared to 15 in Maine,” stated a group member, Scott Jordan. “Considering Canada’s investment and dependency upon its established processing facilities, it’s in the country’s best interest to ‘not rock the boat’ by interfering with the current trade relationship it shares with the Maine lobster industry.”
The effects of these tariffs won’t stop at the docks. The broader economic implications for Maine are significant, given that lobster is a multimillion-dollar industry for the state. Dr. Rachel Bouvier, an economics professor at the University of Southern Maine, told WGAN that Canada is one of Maine’s biggest trade partners. She warned that additional trade barriers could negatively impact both local businesses and the wider economy.
Rep. Jared Golden, an advocate for Maine’s lobster industry, told the Bangor Daily News that he praises Trump’s decision to implement tariffs. “We can incentivize job creation and manufacturing while leveling the playing field and rebalancing our trade. These tariffs are also a leveraging tool to crack down on the deadly flow of fentanyl into our country.”
At the recent U.S.-Canada Lobster Town Meeting in Bar Harbor, tariffs were a major topic of discussion. Industry leaders gathered to assess the potential fallout. Jeff Nichols, communications director for the Maine Department of Marine Resources, emphasized the importance of the cross-border relationship.
“As many people know, the lobster industries in the U.S. and Canada are very integrated. It’s a very symbiotic relationship.”
Last year, the main topics of discussion for the Lobster Town Meeting were the gauge increase as well as markets, offshore wind development, climate change, and innovations in gear.
As seafood businesses explore ways to adapt through alternative markets and processing solutions, some stakeholders are pushing for government intervention to mitigate economic harm. While those who support the tariffs stand by that they are meant to protect American businesses, some of those in the seafood industry fear the opposite.
While these policies unfold, Maine lobstermen will have to wait and see what measures will be taken to support an industry that has been the backbone of the state’s economy.