By Ryan Gowman, Business Consultant
February 27, 2025
As a fisheries business owner in Atlantic Canada, you’re no stranger to weathering tough conditions—both on the water and in the market. But the incoming 25% U.S. tariff on Canadian imports, announced by President Donald Trump and slated to hit in April 2025, is a gale-force challenge unlike any we’ve seen in recent years. With the U.S. as your biggest customer, this tariff could ripple through your operations, from the wharf to your bottom line. Here’s what you need to know—and how to steer your business through the turbulence ahead.
The Stakes: Your U.S. Market Is at Risk
Let’s start with the numbers. In Newfoundland and Labrador, the snow crab fishery hauled in $761 million in 2022, with 96% of that catch shipped stateside. Nova Scotia sends over 40% of its wild-caught fish and seafood across the border, and Prince Edward Island’s crab and lobster sectors lean heavily on U.S. buyers too. Across Atlantic Canada, seafood is a multibillion-dollar lifeline, part of the $26 billion in goods exported to the U.S. in 2023. A 25% tariff hikes the price of your product in that market, making it less competitive against domestic U.S. catches or cheaper imports from elsewhere. Your buyers—importers, processors, even restaurants—may scale back orders or look elsewhere if costs climb too high.
The fallout could be immediate. I’ve spoken with industry leaders who fear the crab season might not even open in spring 2025 if demand tanks. That’s not just a hit to your revenue—it’s a blow to your entire ecosystem: the deckhands you employ, the trucking firms you hire, the local stores your workers support. Think back to the 1992 cod moratorium—30,000 jobs vanished overnight. This isn’t that scale yet, but the warning signs are there.
Supply Chain Headaches: Costs at Every Turn
Your business doesn’t operate in isolation. Take the lobster trade: Maine catch often comes to Atlantic Canada for processing before heading back to the U.S. Tariffs could slap extra costs on every border crossing, disrupting this seamless flow. If you rely on U.S.-sourced gear—nets, traps, or fuel—Canada’s retaliatory 25% tariffs on American goods could drive up your expenses too. Suddenly, your margins are squeezed from both ends.
Strategic Moves: Protect and Pivot
You can’t control Washington or Ottawa, but you can take charge of your response. Here’s where to focus:
Crunch the Numbers Now
Model the tariff’s impact on your pricing and profit. If your snow crab or lobster jumps 25% for U.S. buyers, will they still bite? Run scenarios—10% less volume, 20% less—and map out your break-even point. Knowing your limits gives you a head start on decisions like scaling back production or renegotiating contracts.
Diversify Your Markets
The U.S. isn’t your only option. Asia and Europe have appetites for premium Canadian seafood—think Japan’s love for snow crab or Germany’s taste for lobster. Yes, building new trade routes takes time and investment (certifications, shipping logistics, marketing), but the winter slowdown gives you a window to start. Reach out to your provincial trade reps—they’re already pushing these markets as a lifeline.
Tighten Your Belt
If tariffs stick, cash flow could get choppy. Audit your costs—where can you trim without cutting muscle? Maybe it’s renegotiating supplier terms or pooling shipping with other local firms to cut freight expenses. Every dollar saved buys you breathing room.
Lobby Smart
You’re not in this alone. Industry groups and provincial governments are gearing up to fight for exemptions—seafood’s a shared interest with U.S. coastal states like Maine. Add your voice; share your data on jobs and revenue at risk. A united front could sway trade talks.
The Silver Lining: Timing and Resilience
Here’s a small break: the tariffs hit in February, a quieter season for many of you. That buys time to adjust before the spring rush. And don’t forget—your industry has survived storms before. The U.S. consumer loves your product; their processors need it. This tariff hurts them too, which might pressure Washington to blink.
The Bottom Line
The next few months could test your business like never before. A 25% tariff threatens your U.S. sales, your supply chain, and the communities you sustain. But with sharp planning—cost control, new markets, and a loud voice in the trade fight—you can navigate this. It’s not just about survival; it’s about positioning your fishery to emerge stronger when the skies clear. Let’s get to work—your next catch depends on it.
Comments