Trade taxes mark a dramatic shift, end decades of free trade
Global crab market expert Les Hodges outlines the uncertainty the US seafood industry faces with the imposition of 25% tariffs on imports from Canada and other trading partners.
“These duties mark a dramatic shift, ending decades of free trade and disrupting entire industries. Canada and Mexico have both announced retaliatory measures, and economists warn of rising consumer prices and a potential slowdown in economic growth,” he writes in his latest newsletter.
The US tariffs on Canadian seafood, particularly the 25% duty on snow crab, have been postponed again, now set to take effect on April 2.
Canada, the largest US seafood supplier in 2024, shipped 308,117 metric tons (nearly 678 million pounds)) valued at just under $4 billion. The newly imposed 25% tariff is expected to increase costs for US importers of crab, lobster, and other Canadian seafood by approximately $1 billion.
For snow crab, Hodges said US imports declined 3.7% in 2024 to nearly 124 million pounds. Canada accounted for 91% of the supply, seeing a 4.3% decline. “However, some inventory relief could be on the horizon, as Canada’s snow crab season is expected to begin by the end of the month. The higher prices and looming tariffs will put the market to the test,” Hodges said., adding that snow crab inventories are exhausted “and the trade is eager for replenishment. “
Meanwhile, in response to the 20% tariff on Chinese seafood products, China has imposed its own tariffs. On March 8, President Xi announced a 25% duty on Canadian seafood – including crab and lobster -effective March 20, with an additional 10% tariff on U.S. seafood as further retaliation.
King crab prices soar; supplies plunge
Hodges said that rising costs continue to test the market, particularly in the king crab sector.
“Prices soared in 2024, and through the first two months of 2025, red king crab prices have climbed over 20% with no signs of relief,” he said.
King crab remains the most expensive luxury shellfish, with limited inventory and steadily rising prices. Current supply options are restricted to Norwegian red king crab and Alaskan golden king crab.
Hodges said the days of seeing 30+ million pounds of king crab in the U.S. are over. The total supply of king crab has declined dramatically, plunging from 27 million pounds in 2022 to just 7.7 million pounds in 2024 – a staggering 70% decrease.
