9 hours ago
Lobster industry continues to navigate tariff threats
Fishing boats on Grand Manan island New Brunswick on Thursday, May 8, 2025. THE CANADIAN PRESS/Graham Hughes
Dave Hennerbichler is visiting Nova Scotia from British Columbia, and picking up a load of lobster before he returns home is a 'must do' on his shopping list.
'It's just a specialty, and believe it or not, we can come here and get lobster cheaper than we can buy steak,' said Hennerbichler.
That is likely music to the ears for Lobster Processors Association executive director Nat Richard, who began the recent spring lobster season managing high levels of fear and concern.
'If we had spoken in January, there was a real possibility that we would be hit directly with significant tariffs on our two largest markets — those being the U.S. and China,' said Richard.
The 25 per cent China tariff remains in place. So far, U.S. President Donald Trump has not delivered on his threat to impose additional tariffs on Canadian seafood products, which means, for now, the lobster industry is keeping its head above water. But there are warning signs that overall business is not as strong as last year.
'We've seen a fairly sharp pullback by American consumers. Certainly, the consumer confidence numbers in April and May were quite scary — quite a drop,' said Richard, adding 80 per cent of Canada's lobster exports go to the U.S.
If fewer Americans are buying lobster, and the industry continues to navigate tariffs, it amounts to another troubling and unstable chapter for lobster fisherman Carl Allen.
'I operate in an industry that has an extreme amount of uncertainty built into it by nature,' said Allen, who also captains a boat. 'I leave the wharf in the morning not knowing how many pounds I'm going to catch.'
Overall, volatility is nothing new in the lobster industry. It experienced record lows during COVID-19, but domestic revenues and overseas markets rebounded within two years.
'How we factor in that kind of volatility and that kind of uncertainty and do business planning is a challenge,' said Richard. 'But we are used to it.'
Allen has concerns that go beyond just tariffs.
'The fear is always, does the U.S. go into recession, and then does consumer spending in general drop?' said Allen.
If that were to happen, Allen said the lobster industry would then be in the crosshairs of global financial uncertainty, combined with ongoing tariff threats — which could lead to major financial setbacks for those who make their living at sea.
