China's Retaliatory Tariffs on Canada: For Some Canadian Pork and Seafood Producers, Misfortune Doesn't Come Alone

On March 8, 2025, China announced that, effective March 20, canola oil, oil cakes, and peas imported from Canada will face a 100% tariff while imports of some Canadian pork and seafood products, including clams, crabs, lobster, prawns, and shrimp, will incur a 25% tariff. For companies in this sector, misfortune certainly doesn't come alone as these tariffs will come into effect less than two weeks before the U.S. is likely to reinstate its 25% tariffs on all imports from Canada.

-- China and the U.S. collectively accounted for almost 40% and 83% of Canada's pork and seafood exports, respectively, in 2024.
-- The potential contraction in Chinese demand for Canadian pork and seafood could have varied effects on these producers, depending on their size and geographic diversification.
-- If U.S. tariffs are reinstated, the impact could exacerbate the pressure on Canada's pork and seafood producers.
"These trade disputes highlight the importance for all producers of pork and seafood producers--and indeed all producers of consumer staples--to diversify their supply and customer bases," said Aarti Magan, Vice President, Corporate Ratings at Morningstar DBRS.