Canada's Department of Finance released a statement explaining the decision was made to "protect against broader economic harms" after receiving "feedback" from stakeholders. The exemption removes a significant category of American exports—seafood and fish products—from the list of U.S. goods subject to retaliatory levies.
The move comes as Canada prepares to implement a second round of retaliatory tariffs on U.S. goods, following earlier measures imposed in response to American tariffs on Canadian steel and aluminum. The U.S. seafood industry had warned that the original tariff list would hurt American fishermen and processors, many of whom rely on Canadian markets.
The Canadian government did not specify which stakeholders provided feedback, but industry groups representing both Canadian and U.S. interests had lobbied heavily for the exemption, arguing the tariffs would disrupt supply chains and raise prices for consumers on both sides of the border.
Trade experts note that Canada is the largest foreign market for U.S. seafood exports, buying nearly $2.8 billion worth annually. The exemption spares products such as salmon, lobster, and crab from the new tariffs, which were scheduled to take effect on unspecified dates.
The Trump administration's decision to impose global tariffs on steel and aluminum under Section 232 of the Trade Expansion Act has prompted retaliatory measures from multiple trading partners, including the European Union, Mexico, and China. Canada's initial retaliatory tariffs, covering $12.8 billion worth of U.S. goods, targeted items like yogurt, coffee, and whiskey. The second round, now amended, was expected to cover an additional $16.6 billion in American products.