P.E.I. lobster fishers welcome deal that sees Chinese tariffs dropped from seafood products

Prince Edward Island's lobster industry is breathing a sigh of relief after the federal government announced Canada’s new deal with China, which is expected to eliminate tariffs on lobsters and crab products exported from this country, as well as lower tariffs on Canadian canola.

“We’re pleased that the prime minister was able to resolve this trade irritant that we were dealing with here for the last period of time,” said Bob Creed, executive director of the P.E.I. Seafood Processors Association.

“[We’re] looking forward to a return of normal trading patterns.”

The deal with Beijing will allow tens of thousands of Chinese electric vehicles into the Canadian market in exchange for dropping duties on canola products and removing tariffs on lobsters, crabs and peas from this country between March and at least the end of the year. 

This comes after China hit Canada with the tariffs in March 2025, after Ottawa imposed a 100 per cent tariff on Chinese electric vehicles and a 25 per cent import tax on steel and aluminum.

Premier Bloyce Thompson said the deal “sounds like good news” for Prince Edward Island.

“[It is] going to help our lobster industry here,” Thompson said. “[China] is a massive market and, you know, with fishing season coming up soon, it was going to be important that all markets would be accessible. And it sounds like this might be a turning point for that.” 

Creed said the result of the new deal will be felt in seafood industries beyond the lobster fishery.

“We’re a little bit surprised because we didn’t expect resolution this quickly,” he said. “A tariff really is simply a tax, and it increases the price for consumers and has the effect of decreasing consumption.”

Lobster Fishers of P.E.I. Marketing Board chair Charlie McGeoghegan agrees the development is good news for the Island as a whole.

“The fishery [is] the number two industry on P.E.I. So anytime that the fishery does well, the economy on P.E.I. does well, tourism does well along with it,” he said. 

“China could buy every lobster on P.E.I. quite easily, and it still wouldn't fill the demand that they have for it. So when you combine that with the other 27 countries that are already looking for lobster, it increases demand. And anytime there's an increased demand and not enough product to fill that demand, it adds value to the cost of the product.”

P.E.I. Liberal MP Bobby Morrissey said China is becoming an important market for seafood in Atlantic Canada.

“This gives us an advantage because the Chinese government has still maintained a tariff on U.S. seafood products,” he said. “Any time that you have better access to a market, or freer access to a market, it has a positive impact on prices paid to fishers.”