Tarrifs Archives - Saving Seafood

China to slap tariffs on Alaska seafood, among other U.S. products

June 18, 2018 — The United States today released a list of Chinese goods worth $50 billion on which it will place 25 percent tariffs. Shortly afterward, China announced reciprocal tariffs on U.S. goods, including Alaska seafood.

Garett Evridge, an economist with the McDowell Group, who specializes in the seafood industry, explained that the tariff on seafood is likely to be far reaching.

“Our initial review of this is indicates that really all salmon species, pollock, ground fish, herring, really across the board for Alaska seafood products, in addition to lobster and other products used throughout the U.S., it looks like the announcement indicates that tariff would be 25 percent on product, including Alaska seafood products,” said Evridge.

Both U.S. and Chinese tariffs will reportedly take effect July 6. Evridge said it is too early to know what this will mean for the seafood market.

“There’s a whole other side of this with diplomacy and strategy on the side of China and the U.S. that we’re not really aware of. But in the event that this actually occurs, it will certainly be a challenge to the industry, and it will impact processors, communities, fishermen just because a 25 percent tariff means an increase in cost.”

One thing is clear, however. China plays a major role Alaska’s seafood industry, so the tariffs would affect a significant portion of the market.

Read the full story at KDLG

China threatens tariffs on US lobsters as business booms

June 18, 2018 — A set of retaliatory tariffs released by China on Friday includes a plan to tax American lobster exports, potentially jeopardizing one of the biggest markets for the premium seafood.

Chinese officials announced the planned lobster tariff along with hundreds of other tariffs amid the country’s escalating trade fight with the United States. China said it wants to place new duties on items such as farm products, autos and seafood starting on July 6.

The announcement could have major ramifications for the U.S. seafood industry and for the economy of the state of Maine, which is home to most of the country’s lobster fishery. China’s interest in U.S. lobster has grown exponentially in recent years, and selling to China has become a major focus of the lobster industry.

“Maine’s lobster industry is an irreplaceable piece of our state’s economy that supports thousands of jobs and entire coastal communities,” the state’s congressional delegation said in a statement. “Just two weeks ago, the Maine delegation heard directly from our state’s lobster industry about the economic hardship a trade war with China would cause them.”

The delegation — Republican Sen. Susan Collins, Independent Sen. Angus King; Democratic Rep. Chellie Pingree and Republican Rep. Bruce Poliquin — said they plan to outline their concerns to federal trade officials.

“Hopefully cooler heads can prevail and we can get a solution,” said Matt Jacobson, executive director of the Maine Lobster Marketing Collaborative. “It’s a year round customer in China. This isn’t good news at all.”

Read the full story at the Associated Press

China hikes tariffs on US soybeans, electric cars, fish

June 18, 2018 — China fired back Saturday in a spiraling trade dispute with President Donald Trump by raising import duties on a $34 billion list of American goods including soybeans, electric cars and whiskey.

The government said it was responding in “equal scale” to Trump’s tariff hike on Chinese goods in a conflict over Beijing’s trade surplus and technology policy that companies worry could quickly escalate and chill global economic growth.

China “doesn’t want a trade war” but has to “fight back strongly,” said a Commerce Ministry statement. It said Beijing also was scrapping agreements to narrow its multibillion-dollar trade surplus with the United States by purchasing more American farm goods, natural gas and other products.

The United States and China have the world’s biggest trading relationship but official ties are increasingly strained over complaints Beijing’s industry development tactics violate its free-trade pledges and hurt American companies. Europe, Japan and other trading partners raise similar complaints, but Trump has been unusually direct about challenging Beijing and threatening to disrupt such a large volume of exports.

“In this trade war, it’s the U.S. who is playing the role of provocateur, while China plays defense,” said the Global Times, a newspaper published by the ruling Communist Party. “China is a powerful guardian and has enough ammunition to defend existing trade rules and fairness.”

Beijing will impose an additional 25 percent tariff starting July 6 on 545 products from the United States including soybeans, electric cars, orange juice, whiskey, lobsters, salmon and cigars, according to the Ministry of Finance.

Read the full story from the Associated Press at Boston.com

Climate Change May Be Creating A Seafood Trade War, Too

June 15, 2018 — One of the grand challenges that I find as a climate scientist is conveying to the public the “here and now” of climate change. For many people, it is still some “thing” that seems far off in time or distance from their daily lives of bills, illness, kids, and their jobs. Ironically, climate change touches each of those aspects, but the average person does not often make the connections. People eat seafood and fish, but most people will not make any connections between tonight’s dinner of flounder, lobster or mackerel to climate change as they squeeze that lemon or draw that butter.

A new Rugters University study caught my eye because it is a good example of a “here and now” impact. Climate changes is causing fish species to adjust their habitats at a more rapid pace than the how the world policy’s allocate fish stocks. Many species of flounder, lobster, mackerel and crab are migrating to find colder waters as oceans warm. The study suggests that such shifts may lead to international conflict and reductions in fish supply. Seafood is a pawn in the trade chess game.

Researchers at Rutgers University say that an obsolete and out-dated regulatory system has not kept pace with how the ocean’s waters are warming and shifting fish populations. I actually wrote a few years ago in Forbes about how warming waters were shifting crab populations in the North Pacific and was affecting fishers as well as one of my favorite TV shows, The Deadliest Catch. This new study published in one of the top scientific journals in the world, Science, has provided new insight that has implications for our food supply and potential international conflict.

Read the full story at Forbes

There’s Something Fishy About U.S.-Canada Trade Wars

June 15, 2018 — If U.S. politicians’ love affair with tariffs seems novel, it’s really the latest installment in an on-again, off-again romance. And it’s one that has been much more passionate in the past. In the decades after the Civil War, the “tariff question” was the biggest issue in American elections. On everything from wool to sugar, the U.S. government slapped steep fees on goods passing through its borders. These tariffs protected domestic industry and paid the government’s bills.

But sometimes tariffs also led to trade wars with America’s neighbor to the north. Today, America and Canada fight over dairy and aluminum. In the late 19th century, they fought over frozen herring—and these trade wars meant real violence. When T. Aubrey Byrne alighted from his train in Gloucester, Massachusetts, on the last day of 1894, he stepped into the middle of one such war.

Depending on who you asked, Byrne was either the Treasury’s best special agent, a man who had saved the government fortunes by uncovering massive smuggling rings—or he was a failed ranch hand and ex-newspaperman, a paranoiac who saw fraud in others’ honest toil. But his superiors at Treasury approved of the job he’d done breaking up operations to illicitly import sugar and Chinese laborers. Now Byrne sniffed another conspiracy: a plot by merchants and captains in Gloucester, the capital of New England fishing, to avoid taxes on fish from Newfoundland.

Every winter, a fleet from Gloucester sailed to the island—still a British colony—to fill their holds with frozen herring. At less than a cent apiece, herring would be eaten by humans or used as bait for the more lucrative cod and halibut fisheries. Starting with one entrepreneurial vessel in 1855, by the 1890s almost 100 ships each year went to Newfoundland from Gloucester. And each year tens of millions of spawning herring swam into the bay only to sail out of it.

Read the full story at The Atlantic