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Massive Industry Lobbying Campaign ‘Tariffs Hurt the Heartland’ Begins; NFI Key Sponsor

September 13, 2018 — SEAFOOD NEWS — From California apple growers to Maine lobstermen, businesses are joining forces to try to persuade President Trump that tariffs are hurting U.S. industries.

On Wednesday, organizations representing thousands of companies in industries including retailing, toy manufacturing, farming and technology plan to announce they are cooperating on a lobbying campaign called Tariffs Hurt the Heartland to oppose tariffs on imports.

Furthermore, the National Fisheries Institute, the largest U.S. seafood trade association, is organizing a day this month when members will fly to Washington to talk to members of Congress and the Trump administration. Others coming to Washington include seafood importers from Texas and seafood processors from Minnesota.

It is the latest sign that businesses are ratcheting up lobbying against tariffs that the Trump administration has imposed, or is considering, as Mr. Trump says he will defend American manufacturing jobs. As of June 30, nearly 450 entities employed lobbyists on trade issues—up from about 160 at the start of the year and about 100 when Mr. Trump took office, according to lobbying-disclosure reports compiled by the nonprofit Center for Responsive Politics.

Few policy fights have triggered as big a jump in lobbying activity, although there are more lobbyists overall engaged on perennial issues such as taxes and health care. Some businesses are concerned about rising costs of imported materials; others, particularly farmers, about retaliatory tariffs imposed by China and Europe on U.S. exports.

At the Iowa State Fair last month, a lobbying group backed by the American Farm Bureau handed out “I Support Free Trade” buttons and urged farmers to sign posters proclaiming their opposition to tariffs.

Car manufacturers, auto dealers and vehicle parts makers together plan to run a campaign opposing new tariffs on the industry. And last week, the trade association for retailers including Target Corp. and Walmart Inc. brought 150 small retailers to meetings with lawmakers to talk about how tariffs could hurt their businesses.

“Every trade group is much busier because there’s a lot more activity across all aspects of what trade groups do,” said Steve Orava, who leads the international trade practice at law firm King & Spalding in Washington.

Not all industry groups oppose Mr. Trump’s tariffs. The National Cattlemen’s Beef Association, which represents U.S. ranchers and beef producers, backs the president’s tough trade stance. “We support the president’s overall goal of tearing down trade barriers; we support trying to take them on,” said association spokesman Max Moncaster. China and the European Union currently ban imports of U.S. beef raised with hormones.

And some industries benefit from import duties. Domestic steel companies support Mr. Trump’s tariffs on foreign steel, which have boosted prices and profits.

But most trade-focused lobbying this year has been against tariffs. When the Office of the U.S. Trade Representative took testimony on proposed tariffs in August, a majority of the industry representatives who participated said tariffs would hurt their businesses.

In a letter they plan to send to Congress on Wednesday, business groups will announce their latest effort to make the case against tariffs. The group’s multimillion-dollar Tariffs Hurt the Heartland campaign aims to tell the stories of farmers and business ownersdinged by import duties.

“Every sector of the U.S. economy stands to lose in a trade war,” said Matthew Shay, president of the National Retail Federation. The goal of the campaign is to “ensure Washington understands the real-world consequences of a trade war.”

The U.S. Chamber of Commerce, the National Association of Manufacturers, the Business Roundtable and the Koch brothersare running their own lobbying efforts to promote free trade.

The Trump administration is expected soon to impose tariffs on $200 billion of Chinese imports, on top of tariffs already in effect on $50 billion in goods from China. Mr. Trump has suggested even more duties are in the offing.

The U.S. has also placed tariffs on steel and aluminum imports and is conducting trade negotiations with Europe, Mexico and Canada. China, the EU and other trade partners have announced tariffs of their own on American goods.

The unusual mechanism Mr. Trump is using to impose the tariffs has meant that many lobbyists can’t rely on the usual playbook. For most big policy changes in Washington, such as last year’s tax bill, Congress writes and votes on legislation, a drawn-out process that gives industries many opportunities to weigh in.

In this case, Mr. Trump is using an obscure part of trade law that permits him to impose tariffs unilaterally, sometimes in the name of national security. That is why many of the industries seeking to roll back or avoid tariffs are targeting the Trump administration alone.

Earlier this year, comedian Ben Stein starred in ads calling tariffs “B-A-D economics.” The ads, sponsored by retail lobbying group the National Retail Federation, ran on a favorite show of Mr. Trump’s, “Fox & Friends” on Fox News.

Farmers for Free Trade, hoping to catch Mr. Trump’s eye, has run its ads mostly in Washington, as well as in the Palm Beach, Fla., media market when Mr. Trump is staying at his Mar-a-Lago resort there. The group also has identified 10 states that will be important to Mr. Trump’s re-election and is highlighting stories of farmers who would be hurt by his trade policies.

When Commerce Secretary Wilbur Ross last month visited Fargo, N.D., to discuss the impact of tariffs, the farmers’ group greeted him with a string of roadside billboards that read: “Secretary Ross, Tariffs Hurt ND Farmers.”

The Maine Lobster Dealers Association is agitating, too, saying tariffs will hit them harder than others because reciprocal tariffs imposed on the lobsters they sell to China don’t apply to lobsters sold in China by Canadian lobstermen, even though the lobsters are harvested from the same Atlantic waters.

“These guys want to sell lobsters, they don’t want to be wasting their time lobbying members of Congress,” said Annie Tselikis, the executive director of the Maine Lobster Dealers’ Association.

This story originally appeared on SeafoodNews.com, a subscription site. It is reprinted with permission.

National Fisheries Institute joins US business-backed campaign against tariffs

September 13, 2018 — The National Fisheries Institute has joined around 80 other U.S. trade associations in a coordinated campaign to oppose tariffs and other barriers to free trade.

The multi-industry coalition, Americans for Free Trade, on Wedneday, 12 September, launched a multi-million dollar national campaign titled Tariffs Hurt the Heartland. The campaign is aimed at members of the U.S. Congress and the general public and will tell stories of American businesses, farmers, workers, and families being hurt by the recently imposed tariffs. It will include events in congressional districts across the country; paid television, radio, and online advertisements; a “rapid-response war room” that will fact check and respond to tariff announcements; a digital and traditional media campaign including op-eds, blogs, and press statements on tariff-related issues; and direct outreach to key members of Congress “on behalf of grassroots voices from across the nation,” according to the newly-formed organization.

“American jobs are fueled by international trade in seafood,” NFI President John Connelly said in a press release. “Without access to seafood imports from important markets like China, or if these products become too expensive, jobs here in the U.S. will pay the price.”

Partners in the campaign include the National Retail Federation, Farmers for Free Trade, Retail Industry Leaders, the Consumer Technology Association, the American Apparel and Footwear Association, and the National Marine Manufacturers Association. A full list of participating organizations can be seen at the campaign’s website, AmericansforFreeTrade.com.

Read the full story at Seafood Source

Sen. Murkowski Questions International Trade Administration on Alaskan Seafood Industry Concerns

September 12, 2018 — The following was released by The Office of Senator Lisa Murkowski:

U.S. Senator Lisa Murkowski (R-AK) participated in a Commerce, Justice, and Science (CJS) Appropriations Subcommittee hearing yesterday, to review the President’s Fiscal Year 2019 (FY19) funding request for the Bureau of Industry and Security, the International Trade Administration, and the United States International Trade Commission.

Witnesses participating in the hearing included: Nazak Nikakhtar, Assistant Secretary for Industry and Analysis at the International Trade Administration (ITA); Richard Ashooh, Assistant Secretary for Export Administration at the Bureau of Industry and Security (BIS); and David S. Johanson, Chairman at the United States International Trade Commission (USITC).

During the hearing Senator Murkowski expressed some of the concerns of Alaskan stakeholders regarding the seafood industry.

“Until recently, a positive trade relationship was developing between Alaska and China—of our salmon exports, 40% of those exports went to China. For cod, 54% of our exports went to China. In 2017, we saw roughly 1/3 of Alaska’s seafood exports end up in China, worth nearly $1 billion. So this is considerable” said Senator Murkowski. “Now, Alaskans are facing steep Chinese tariffs on these exports—a pretty significant trade barrier. This is on top of lost market share due to the Russian embargo on American seafood, which has been in place since 2014 as retaliation for sanctions, and challenging import quotas that currently exist in the EU, Japan, and South Korea.”

Murkowski went on to question Assistant Secretary Nikakhtar on the ITA’s strategy towards the retaliatory tariffs imposed on the seafood industry and barriers to seafood industry trade.

Read the full release here

Trump calls for more tariffs in scale-up of trade war against China

September 10, 2018 — U.S. President Donald Trump threatened to extend U.S. tariffs to an additional USD 267 billion (EUR 230.1 billion) worth of Chinese goods in comments made on Friday, 7 September.

Trump said the new round of tariffs will “take place very soon, depending on what happens.” He added a new list of goods to be affected by the tariffs is ready to go and could be rolled out on short notice, according to the Wall Street Journal.

Trump’s administration previously announced tariffs on USD 200 billion (EUR 170 billion) of Chinese goods on 11 July. That was a follow-up on his levying of tariffs on USD 50 billion (EUR 29.3 billion) worth of Chinese goods in June, and China’s equivalent response later that month.

“If the United States insists on imposing another round of tariffs on Chinese products, China will definitely take countermeasures to safeguard its legitimate rights and interests,” Chinese Foreign Ministry spokesman Geng Shuang said following publication of Trump’s threat on 7 September.

Read the full story at Seafood Source

 

Tariffs throw wrench into seafood supply chain

September 6, 2018 — Many seafood processors, fishermen and support businesses have been watching with increasing dismay as the trade war between U.S. and China heats up and impacts billions of dollars in trade.

In March, President Donald Trump’s administration announced its intention to levy tariffs against China in connection with “unfair” trade practices, including theft of intellectual property. When the first round of tariffs on Chinese products were announced, the seafood industry hoped to escape the list of impacted items.

That hope faded when a host of seafood products were included on the list of proposed retaliatory tariffs from the Chinese government. Then Office of the U.S. Trade Representative proposed another set of tariffs, including seafood products, at 10 percent in July. Then that number was upped to 25 percent in August.

In a hearing hosted by the Office of the U.S. Trade Representative Aug. 20–24, Bob DeHaan of the National Fisheries Institute said the tariffs will effectively punish American fishermen for Chinese intellectual property theft, which has nothing to do with them. Of the $2.7 billion in proposed tariffs on seafood, more than $95 million came from Alaskan fishermen.

“In many cases such as the iconic Bristol Bay salmon run that just concluded this year, the fishermen are family-owned enterprises who sell their catch to seafood companies for processing, distribution and sale around the world,” he said. “How punishing these harvesters and these businesses for in effect buying American will convince China to respect its obligations regarding intellectual property rights and technology transfers is difficult to fathom.”

Read the full story at the Alaska Journal of Commerce

Alaskans worried by prospect of deep-sea fish farms

September 4, 2018 — In a Centennial Hall listening session, Alaskans raised concerns about federal plans to boost open-ocean fish farms under a new strategic plan for the U.S. Department of Commerce.

On Friday afternoon, Tim Gallaudet, acting undersecretary of commerce for oceans and atmosphere, hosted a listening session at the end of a weeklong gathering of National Oceanic and Atmospheric Administration experts in Juneau.

NOAA is an agency of the Department of Commerce, and Gallaudet is among the figures hosting meetings across the country as part of the process that creates the strategic plan.

In a speech opening the listening session, Gallaudet said the strategic plan is an “initiative to grow the American ‘blue economy.’”

That phrase is used as an umbrella term that includes fisheries, oceanic tourism and other aspects of the national economy that relate to the oceans.

Gallaudet echoed the familiar refrains of the Trump Administration, saying the department is interested in deregulation and “reducing the seafood trade deficit.”

President Donald Trump’s trade war with China has resulted in Chinese tariffs on Alaska seafood exported to that country, and American tariffs on processed Alaska seafood products imported from China.

Read the full story at the Juneau Empire

Tariffs set to take toll on Alaska seafood exports and imports

August 30, 2018 — More seafood tariffs in Trump’s trade war with China are hitting Alaska coming and going.

On July 6, the first 25 percent tax went into effect on more than 170 U.S. seafood products going to China. On Aug. 23 more items were added to the list, including fishmeal from Alaska.

“As of right now, nearly every species and product from Alaska is on that list of tariffs,” said Garrett Evridge, a fisheries economist with the McDowell Group.

Alaska produces more than 70,000 metric tons of fishmeal per year (about 155 million pounds), mostly from pollock trimmings, with salmon a distant second. The pollock meal is used primarily in Chinese aquaculture production, while salmon meal goes mostly to pet food makers in the U.S.

In 2017 about $70 million worth of fishmeal from Alaska pollock was exported to China from processing plants all over the state.

Read the full story at the Alaska Journal of Commerce

Chinese buyers hesitant to buy Alaska seafood as U.S. weighs another round of tariffs

August 28, 2018 — In the first round of what seems to be an escalating trade dispute between the U.S. and China, tariffs have been levied on billions of dollars worth of goods in both countries. The Alaska fishing industry, which harvests roughly 60 percent of all wild seafood in the U.S., has been caught in the crosshairs of that disagreement.

But it’s not the Chinese tariffs that’s giving the industry heartburn. It’s a proposed tariff on seafood imported from China.

The Alaska seafood industry has a unique relationship with China. Nearly $1 billion worth of Alaska seafood was exported into the country in 2017, but that’s just the first step in a global supply chain.

“So much of our exports to China are reprocessed and re-exported,” Garrett Everidge, a fisheries economist with the McDowell Group, said.

Everidge explains that after those fish are reprocessed, they’re exported into markets around the world, including the U.S. Although, it’s hard to discern from trade data just how much winds back up in the U.S. market.

China kept its relationship with the Alaska seafood industry in mind when it levied a 25 percent tariff on U.S. seafood earlier this summer.

Read the full story at Alaska Public Media

US senator from Alaska speaks out against Trump tariffs

August 27, 2018 — If the Trump administration is serious about putting “America First,” then it must consider what the proposed 25 percent tariff on Chinese products will do to the Alaskan seafood industry. That was the message U.S. Sen. Dan Sullivan delivered last week at a public hearing held by the U.S. International Trade Commission.

The Alaska Republican testified his state is currently caught in the crossfire as the world’s two largest economies consider hiking levies on goods imported from each other.

Sullivan said nearly USD 1 billion (EUR 859.4 million) in U.S. seafood ultimately destined for American consumers is being targeted by these tariffs. That’s because frozen fish, after it’s initially processed in the States, is sent to China to be filleted because it is more cost-effective. Most of that is caught by Alaskan fishermen.

Sullivan likened the fish to an American car made in the U.S. by local workers, only to have the final detailing performed in China before its sent back to dealerships here. The Trump administration wouldn’t consider increasing tariffs on those automobiles, Sullivan said.

Read the full story at Seafood Source

 

Seafood marketing group says fish meal included in tariff changes, calls for comments

August 27, 2018 — Alaska Seafood Marketing Institute recently received clarification about tariff changes, which went into effect on July 6, for Alaska seafood products going into the Chinese domestic market, an organization spokesperson said.

The public-private marketing organization promotes Alaska’s seafood industry.

“We previously thought that fish meal would not be included and we now know that fish meal products will be included in those proposed tariff increases from China,” communications director Jeremy Woodrow said.

Woodrow says $69 million in fish meal products — mostly used in animal feed — were exported to China last year.

Woodrow said one of the largest generators of fishmeal is the Alaska pollock industry.

The fishmeal market is important to Alaska because it ensures full utilization of seafood and helps generate revenue.

“The more that you can get out of the fish, the more everybody benefits,” Woodrow said. “That’s right down to the fishermen, to the processors, as well as the communities.”

Many fishing communities rely on a variety of fish taxes.

Read the full story at KTOO

 

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