Canada has reversed plans to impose retaliatory tariffs on U.S. fish and seafood products, following concerns that the measures would damage the seafood industry along both sides of the Atlantic coast. The decision was announced on Wednesday and removes these products from a list of tariffs originally scheduled to take effect on September 8.

The reversal was welcomed by Canadian and U.S. officials, fishermen, and industry stakeholders who warned that the proposed tariffs could disrupt a closely integrated supply chain between the two countries. A significant portion of seafood caught off the coast of Maine is processed in facilities in New Brunswick, with nearly half of the annual Maine lobster catch sent to Canada for processing each fall. The tariffs would have applied to these lobsters, potentially harming both Canadian processors and U.S. fishermen.

Canadian Fisheries Minister Joanne Thompson emphasized that the adjustments were made “to protect our economy,” noting that the fish and seafood sector plays a vital role in coastal regions. Two federal government sources—not authorized to speak publicly—indicated the government acted after recognizing the potential harm to Atlantic Canada’s seasonal fishing and seafood processing activities, which are deeply intertwined with the U.S. industry.

Maine Senators Angus King and Susan Collins expressed relief at the decision. Senator King had warned that a 25-percent tariff on lobsters would inflict devastating damage on Maine’s lobster fishery, which depends heavily on shipments to Canadian processors. King cautioned that further escalation of the trade dispute could result in double tariffs when processed products are shipped back into the United States. Senator Collins praised Canada’s move to remove seafood from the tariff list, saying it protected an important market for Maine’s lobstermen during the critical fall fishing season.

The Canadian Independent Fish Harvesters’ Federation thanked the government for “listening to the concerns of the industry,” highlighting the complexity of the seafood supply chain that spans provincial and international borders. The federation underscored that processors, harvesters, distributors, and retailers all depend on coordinated cross-border networks.

In addition to the impact on harvesters and processors, representatives from the restaurant sector also welcomed the change. Kelly Higginson, CEO of Restaurants Canada, noted that while most seafood and meat purchased by Canadian restaurants is sourced domestically, suppliers rely on U.S. imports as a key part of their inventory. She warned the tariffs could have caused price increases by forcing restaurants to seek alternatives internationally, which would strain global supplies and raise costs. Some operators had already seen shrimp prices rise sharply, especially those sourcing from India.

Finance Minister François-Philippe Champagne’s office said the government had engaged with stakeholders and provinces throughout the process, and the decision to adjust the tariff response was aimed at strengthening Canadian industries and aligning Canada’s retaliatory measures with those imposed by the United States, dollar for dollar and rate for rate.

The withdrawal of tariffs on U.S. seafood reflects the complexities of contemporary trade disputes, particularly in sectors where economies and supply chains are deeply integrated across borders. It also highlights the balancing act governments face in responding to trade conflicts without inflicting unintended harm on domestic industries.