Trump plans to impose a 25% tariff on Canadian lobsters, and the Canadian dollar depreciates rapidly

Published 2024년 12월 3일

Tridge summary

The article highlights the challenges faced by the Canadian lobster industry due to the unexpected 25% tariff announced by former US President Trump on Canadian imports. This tariff, imposed as the fishing season begins in Canada's most significant lobster-producing region, has negatively impacted the already depreciating Canadian dollar against the US dollar, causing increased costs for raw materials and affecting the industry's export competitiveness. Despite these setbacks, the industry is exploring opportunities in other markets, especially China, and plans to engage with US trade representatives to address the tariff issue. Some Canadian exporters are also facing additional challenges as they struggle with the effects of the tariff on commodity prices and consumer goods, emphasizing the need for policy revisions to prevent further harm to the industry.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

On November 26, the fishing season of Canada's largest lobster producing area (Area 33/34) officially began. At the same time, Trump suddenly announced that he would impose a 25% tariff on Canadian imports, which directly poured cold water on Canadian fishermen. Since last week, the Canadian dollar has continued to depreciate against the US dollar. On November 27, the exchange rate rose to 1.4054, a 12-month high, with an average depreciation of more than 6.6%. Although the depreciation of the Canadian dollar is conducive to lobster exports, the United States is Canada's largest trading partner, and many Canadian companies also purchase lobsters from Maine, USA for processing. The depreciation of the Canadian dollar means an increase in raw material costs. Geoff, executive director of the Canadian Lobster Association (LLC), Irvine said: "Normally, Canada buys a lot of Maine lobsters from the United States for secondary processing because the Maine season is usually in the summer ...

Source: Foodmate