The 25% U.S. tariff on Canadian exports has already taken effect.
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March 4 arrived and, with it, the 25% tariffs on Canadian exports to the United States that were announced on February 4 - and immediately put on hold for a month - finally went into effect. A possible reduction in demand for British Columbia salmon by up to 40% is just one of several negative impacts that B.C. salmon farmers have warned about in a statement assessing the situation.
To get a good understanding of the impact that U.S. tariffs could have on the salmon farming industry in this Canadian province, the BC Salmon Farmers Association (BCSFA) shared a first piece of information that helps put all the others in context: approximately 70% of B.C.'s annual farmed salmon production is destined for U.S. customers.
According to the BCSFA, a 25% tariff would reduce U.S. demand by 32-40%. In addition, it would decrease revenues for B.C. salmon farmers by between CAD 131.5 and CAD 142.4 million per year, resulting in a reduction in GDP of between CAD 155 and CAD 168 million.
As far as Canadian workers are concerned, the tariff would cause a drop of between CAD 68 million and CAD 73.6 million in income for them, in addition to causing a loss of between 1,100 and 1,195 jobs.
All this at a time when the B.C. salmon farming sector is already operating in what it describes as "an unprecedented environment of business uncertainty" due to the Government of Canada's decision to ban open net-pen salmon aquaculture in B.C. coastal waters by June 30, 2029. A scenario that, according to B.C. salmon farmers, actively discourages technological and labor investments.
"Tariffs will place another substantial and unnecessary burden on Canada's already threatened salmon farming sector," the BC Salmon Farmers Association warned in its statement.
The BCSFA noted that farmed salmon plays a vital role in Canada's food security and trade, providing 380 million nutritious meals a year and contributing CAD 1.17 billion to annual economic activity, while supporting communities - many of them rural - and more than 4,500 jobs across the country.
"Ensuring its continued accessibility is not only critical to salmon farmers but also to the broader Canadian economy," added the statement from the British Columbia Salmon Farmers.
Likewise, the BCSFA also recalled that salmon aquaculture relies on an integrated supply chain with products from Canada and the U.S., from ingredients in salmon feed to food-safe packaging, with numerous suppliers and services involved.
In other words, the relationship is a two-way street in which B.C. salmon farmers will not only be affected by the U.S. tariffs but also by the tariffs that, since March 4, Canada has imposed on products imported from the United States. The trade war is on.
"In response to unjustified U.S. tariffs, the Government of Canada is moving forward with 25% tariffs on CAD 155 billion worth of imported goods, beginning immediately with a list of goods worth CAD 30 billion. The scope of the Canadian counter tariffs will be increased to CAD 55 billion if the current U.S. tariffs are maintained," the Canadian Federal Government said in a statement issued on March 4.
"Preparations of a kind used in animal feeding" or "Fats and oils and their fractions, of fish or marine mammals, whether or not refined, but not chemically modified," are two examples of what can be found in that first list of goods.
Against that backdrop, the BC Salmon Farmers Association - which represents over 60 businesses and organizations throughout the value chain of finfish aquaculture in B.C. accounting for over 95% of the annual provincial harvest of farmed salmon in the province - appealed to the Federal Government.
"At a time when food security and economic stability are top priorities, Canada has an opportunity to strengthen its commitment to sustainable, healthy, and locally produced food," the BCSFA stated. And made a call, "We need a rational, evidenced-based policy approach and a clear government signal that salmon farming is a key component of Canada's agri-food sector."
With that, the BCSFA claimed, the sector could generate CAD 2.5 billion in economic output, CAD 930 million in GDP, and 9,000 jobs, paying CAD 560 million in wages annually by 2030. In January, BC Salmon Farmers Association Executive Director Brian Kingzett had already claimed that by 2040, BC salmon farmers could generate CAD 4.2 billion in production.
Pending that response from the Canadian Federal Government, B.C. salmon farmers continue to work at all levels "to ensure that government decision-makers fully understand the impacts of trade barriers on salmon farming operations, employees, and communities."
At the national level, they do so through the Canadian Aquaculture Industry Alliance (CAIA) - which recently urged the Federal Government to stop what it described as "self-inflicted damage to Canada's aquaculture sector" -, and the National Seafood Roundtable on Tariffs. Meanwhile, they are also working at the provincial level through the B.C. Agriculture Council (BCAC) and in the B.C. Premier's new task force on agriculture and food economy.
