OTTAWA--Canadian officials have removed U.S. seafood products from their list of retaliatory-tariff targets, a swift reversal likely fueled by anger from east-coast marine food firms and fear they would be subject to new American levies.
Canada's Department of Finance issued the notice late Wednesday on the X platform - less than 48 hours after the Canadian government released a list of more than 700 U.S. products that would be subject to tariffs ranging from 15% to 50%. Canada's retaliation is in response to the collapse of trade talks last week, resulting in a new Trump administration tariff of 50% on about $20 billion in Canadian goods.
Canada's retaliatory duties are set to be implemented on Sept. 8. Officials and businesses in both countries are bracing for a prolonged trade conflict with no immediate resumption of talks.
"Based on feedback, we have made select adjustments to protect against broader economic harms, including removing seafood and fish products from our list of counter tariffs," the finance ministry said in its social-media post. The ministry added it would still maintain retaliatory tariffs targeting about $20 billion of U.S. imports.
As a result of the change, Canada's retaliatory tariff list contains 629 items, down from the original 800-plus goods issued Tuesday.
Trade analysts said the preponderance of U.S. seafood products on the list - while relatively small in dollar value - indicated that Canada wanted to exert pressure on the Republican Party in Maine, where Sen. Susan Collins faces re-election in the November midterms. Collins had warned that Trump's trade policy as it pertains to Canada posed economic risks to her state.
Canada's Industry Minister Melanie Joly said applying pressure on Republican lawmakers was a factor in crafting the retaliatory-tariff list.
The Nova Scotia Seafood Alliance, which represents more than 200 firms in the Atlantic Canadian province, was among the most vocal critics of the government's attempt to penalize U.S. seafood products. It said seafood items on the retaliation list are imported by its member companies, where they are processed and then shipped back to the U.S.
The alliance's executive director, Kris Vascotto, said member companies would have faced significant cost increases had the retaliatory tariffs remained in place, and faced decisions about operating. "I am delighted to see this issue resolved, and thank [federal officials] for their attentiveness and willingness to listen," Vascotto said.
Others feared retribution. "It's pretty obvious why we were worried," said Geoff Irvine, executive director of the Lobster Council of Canada, citing the possibility of the Trump administration rolling out tariffs on Canadian fish products. "We were all surprised that seafood was included" on Canada's list.
Mark Warner, a Toronto-based trade and investment lawyer, said Canada's quick removal of seafood products "underscores the speed with which the retaliatory list was drawn up, and the inherent difficulty of attempting to accomplish the twin aims of politically targeted tariffs and dollar-for-dollar retaliation."
Last week, the U.S. and Canada appeared headed for a trade pact whereby the Trump administration would drop its plan to slap 50% duties on certain Canadian goods, and sharply lower its tariffs of Canadian-made steel, aluminum and automobiles. The U.S. said the 50% tariffs are in response to alleged Canadian mistreatment of U.S. automobiles, wines and spirits, and dairy products.
There was a partial thaw between the neighboring countries Thursday, with one of Canada's top trade officials welcoming a commitment from U.S. Trade Representative Jamieson Greer to withdraw demands that Ottawa claimed could weaken protections for the French language and culture.
Greer told the Canadian Broadcasting Corp. that U.S. officials had questions about Canada's efforts to compel U.S. streaming companies to promote and show more French-language programming on its platforms. "This is something we talked about, but we showed a lot of flexibility," Greer said. "There is no way we would let a good deal go by for something like this."
Dominic LeBlanc, Canada's minister in charge of U.S. trade, said he was encouraged by Greer's remarks, and awaited "further constructive U.S. clarifications on their other positions" that might lead to a possible trade deal between the two closely integrated economies.