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”.
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.
