Saving Seafood

US hits back at China with more tariffs; most seafood hit with 10 percent duty

July 11, 2018 — The administration of U.S. President Donald Trump announced tariffs on USD 200 billion (EUR 170 billion) of Chinese goods on Wednesday, 11 July – the latest escalation in the ongoing trade war between the two countries.

The move will add 10 percent tariffs to a wide assortment of Chinese goods, with seafood featuring prominently. The 6,031 items included in the list published by U.S. Trade Representative Robert Lighthizer include a litany of seafood items, including many categories of shrimp, tilapia, salmon, pollock, tuna, flatfish, crab, scallops, squid, and fishmeal.

“As a result of China’s retaliation and failure to change its practices, the President has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional USD 200 billion of Chinese imports. This is an appropriate response under the authority of Section 301 to obtain the elimination of China’s harmful industrial policies,” Lighthizer said in a press release. “USTR will proceed with a transparent and comprehensive public notice and comment process prior to the imposition of final tariffs, as we have for previous tariffs.”

If and when they are imposed – scheduled for 60 days from their announcement – the new tariffs will cover almost 40 percent of the USD 505 billion (EUR 430 billion) worth of products China shipped to the United States in 2017. Retaliatory tariffs recently put in place by China on USD 50 billion (EUR 42.6 billion) worth of U.S. goods equate to about 38 percent  of the USD 130 billion (EUR 111 billion) worth of goods the U.S. sent to China in 2017.

According to data from the National Oceanic and Atmospheric Administration, the U.S. imported USD 2.7 billion (EUR 2.3 billion) of Chinese seafood in 2017, while sending USD 1.3 billion (EUR 1.1 billion) worth of seafood to China.

Read the full story at Seafood Source

China’s tariffs will hit farm states hard, spare service-heavy states

July 11, 2018 — Whether it’s Iowa soybeans or Alaskan salmon, don’t expect the tariffs China is imposing on the U.S. to fall equally. Some states are at more risk than others.

Farm and seafood-producing states are going to be hit hardest by China’s new tariffs on U.S. goods, according to an analysis by Paul Armstrong-Taylor, resident professor of international economics at the Hopkins-Nanjing Center at Nanjing University in China. States where cars and SUVs are made and shipped to China are on the hook, as well.

The Chinese government imposed $34 billion in new duties on goods exported from the U.S. last week in retaliation for the Trump administration’s round of tariffs aimed at driving better deals on trade. Economists have warned the trade war could risk jobs, industry profits and lead to higher prices for consumers.

“Agricultural states, I think, are being hit the hardest,” said Rodney Ludema, a Georgetown University professor and former senior international economist in the White House Council of Economic Advisers under President Barack Obama. The tariffs spare states “that are heavily service-dependent, like New York.”

In terms of value, some 38 percent of products on the tariff list are agricultural, including soybeans, sorghum, tobacco and meat, said Chad Bown, a senior fellow at the Peterson Institute for International Economics. That’s bad news for farm-belt states, primarily in the Midwest.

Read the full story at USA Today

FLORIDA: China Trade War Hits Keys Lobster Fishermen

July 9, 2018 — On a commercial fishing dock outside of Marathon, a television sat atop a makeshift table allowing a small crew of workers to watch the latest World Cup soccer match while repairing lobster traps and painting buoys.

With lobster season a few weeks away, thousands of traps were waiting to be loaded on boats and dropped in the waters up and down the Florida Keys.

“Gooooooal!,” the play-by-play announcer suddenly blared in Spanish, as Sweden scored the second of three goals on Mexico. The largely Mexican crew stared at the television in disbelief.

Boat captain Gary Nichols wasn’t paying much attention to the game. He was trying to cope with another world event – the growing U.S. trade war with China.

“It’s starting to get a little scary,” said Nichols, a commercial fisherman in the Keys for more than 30 years.

On Friday, the United States imposed $34 billion in tariffs on a variety of Chinese products, including computers, dishwashers and medical devices.

In return, China immediately fired back with $34 billion in tariffs on U.S. goods, such as pork, poultry, soybeans, and corn. And tucked into the list of 545 products getting slapped with a 25 percent tariff by China were Florida lobsters.

“I was really praying that wasn’t going to occur,” Nichols said. “And at this moment I don’t know what is going to happen, we’re all just in limbo.”

Read the full story at CBS Miami

WALL STREET JOURNAL: Trump Boils Maine Lobstermen

July 9, 2018 — Donald Trump has upended global trade relationships, promising that temporary disruption will end in better terms for American businesses. Tell that to the Maine lobster industry that his policies are putting at a major disadvantage in Europe and China.

These should be halcyon days in lobstertown. Maine harvests more lobster than any other U.S. state or Canadian province. Last year it landed nearly 111 million pounds—its fourth-largest annual haul—which it sold for $450 million. The lobster industry accounts for 2% of Maine’s economy.

And China represents a hungry new market. The post-molt lobsters Maine harvests from July through November have softer shells than Canadian lobsters, so they’re lower quality. But they also sell for several dollars less a pound. In the price-sensitive Chinese market, that has given the U.S. industry a competitive advantage over its Canadian counterparts. In 2017 the U.S. exported more than $137 million in lobsters to China, up from $52 million in 2015.

Yet Mr. Trump’s unilateral tariffs are about to erode the price advantage of American lobsters. After the U.S. announced on June 15 plans to impose a 25% tariff on $50 billion in Chinese goods, Beijing retaliated with a new 25% tariff on American seafood, farm products and autos, effective July 6. That’s on top of the 10% to 15% tariffs China already imposes on U.S. and Canadian lobster.

Read the full opinion piece at the Wall Street Journal 

What they’re saying: Local industries react to Trump’s trade war

July 9, 2018 — Local agricultural industries caught in the crossfire of President Trump’s trade disputes with some of the country’s biggest trading partners are increasingly worried that they will suffer from retaliatory tariffs on American goods.

Why it matters: From Florida to Wisconsin to Washington state, Trump risks threatening the very industries he pledged to protect on the campaign trail — and his tariffs could mean a brutal blow for the economy in states that he won in 2016.

What they’re saying:

In the Florida Keys, commercial fishermen are worried about the retaliatory tariffs China slapped Friday on 545 U.S. products, which target Florida lobster:

“At this moment I don’t know what is going to happen, we’re all just in limbo. We’ve been very fortunate over the last several years with the Chinese market.” — Gary Nichols, a lobster fisherman who voted for Trump, told CBS Miami.

Washington’s seed industry could face issues, too. Dave Armstrong, the CEO of Sakata Seed Company, told the Skagit Valley Herald that the company’s top customers are in Asia, Europe, Canada, and Mexico — and a prolonged trade war could cause the company to consider moving its operations elsewhere.

“It’s a global hub of seed movement. The actions being taken and threatened would absolutely add complexity and barriers to our ability to move seed in and out of the U.S.” — Dave Armstrong, the CEO of Sakata Seed Company

Read the full story at Axios

Lobsters caught in global tariff tit-for-tat

July 9, 2018 — Veteran lobsterman Billy Mahoney is already feeling the pinch – and not from the claws of his catch.

Mahoney sells his lobsters to a dealer in Massachusetts who, in turn, sells most of the product to an increasingly lobster-hungry China. The proposed tariffs between the U.S. and the world’s second-largest economy have already lowered the price Mahoney gets for his lobsters by 50 cents a pound.

If the tariffs imposed imposed Friday by the Trump administration hit as hard as expected, Mahoney predicts, “All hell is going to break loose as far as the price.” What’s more, China will turn to Canada for New England’s ocean delicacy, he says.

A Harvard graduate who sets out from Nahant, Mahoney has been trapping Homarus americanus for more than 40 years. At 70, he says he is close to retirement, but he has a brother in the business as well as four cousins who are bound to suffer if the tariffs linger.

Maine and Massachusetts together landed almost $700 million worth of lobster last year, 94 percent of the nation’s total. At the same time, exports from Maine to China increased more than 30 percent, according to the National Oceanic and Atmospheric Administration.

But South Shore lobstermen, already hit hard by extended seasonal closures of their fishing grounds, might largely escape the latest blow to their industry.

Read the full story at The Patriot Ledger

Trump effort to lift U.S. offshore wind sector sparks interest – from Europe

July 5, 2018 — The Trump administration wants to fire up development of the U.S. offshore wind industry by streamlining permitting and carving out vast areas off the coast for leasing – part of its ‘America First’ policy to boost domestic energy production and jobs.

The Europeans have taken note.

The drive to open America’s offshore wind industry has attracted Europe’s biggest renewable energy companies, who see the U.S. East Coast as a new frontier after years of success across the Atlantic.

Less experienced U.S. wind power companies, meanwhile, have struggled to compete in their own backyard, according to lease data and interviews with industry executives. Many are steering clear of the opportunity altogether, concerned by development costs and attracted to cheaper options on land.

The Trump administration hopes the industry will help supply power to the heavily-populated Northeast, eventually creating American jobs in manufacturing turbines, towers and other components. Its efforts are part of a broader push to relax regulations and spur development across the energy complex.

“This would be American produced energy, and American jobs,” said Vincent DeVito, energy policy advisor to Interior Secretary Ryan Zinke. “It fits well with the America First agenda.”

Read the full story at Reuters

US border patrol boat strayed into Canadian waters chasing migrants: fishermen

July 5, 2018 — A US border patrol boat strayed into Canadian territorial waters while chasing “illegal immigrants” off the coast of Maine and Nova Scotia, Canadian fishermen said Wednesday.

Laurence Cook, chair of the Grand Manan Fishermen’s Association, said on Facebook that a US border patrol launch out of Maine attempted to stop a Canadian fishing vessel in Canadian waters.

Grand Manan is a Canadian island in the Gulf of Maine, right off the coast that hosts the border between the United States and Canada.

Cook said the incident took place on June 24 near Machias Seal Island, a tiny and rocky outcrop a dozen miles (kilometers) south of Grand Manan with rich lobster grounds, and whose sovereignty is disputed by Washington, although the Canadian Coast Guard maintains a lighthouse there.

According to Cook, the Canadian fishing captain, Nick Brown, informed the US vessel that “he was a Canadian vessel legally fishing in Canadian waters.”

“Typical American bullies,” said Cook, who said he was “not surprised to see the Americans trying to push people around.”

Ties between Canada and the United States have been strained since President Donald Trump slapped tariffs on Canadian steel and aluminum, citing US national security, with Trump calling Canadian Prime Minister Justin Trudeau “very dishonest” and “weak” after a spat at the G7 meeting in Quebec last month.

Read the full story from the Agence France-Presse at Yahoo.com

US-China tariffs: What’s behind them, who stands to be hurt?

July 5, 2018 — President Donald Trump has boldly declared that trade wars are easy to win. He’s about to find out.

Barring a last-minute breakthrough, the Trump administration on Friday will start imposing tariffs on $34 billion in Chinese imports. And China will promptly strike back with tariffs on an equal amount of U.S. exports.

And just like that, a high-risk trade war between the world’s two biggest economies will begin — one that could quickly escalate.

“I see us running into a full collision course in a few days,” said Ashley Craig, a trade lawyer at Venable LLP. “It seems as if both sides are fairly dug in.”

Here’s a look at what’s happening this week and its likely impact.

WHAT IS THE U.S. DOING?

The White House last month announced plans to slap 25 percent tariffs on roughly 1,100 goods imported from China, worth $50 billion a year. It had originally proposed the tariffs in April, starting with 1,333 Chinese products. After receiving public feedback, the administration cut 515 imports from the blacklist and added 284 others.

Starting Friday, the U.S. will tax 818 Chinese products, worth $34 billion a year, from the original list. It won’t target the 284 additions, worth $16 billion, until it gathers further public comments.

Read the full story from the Associated Press at the Gloucester Daily Times

NOAA chief backs away from comments about climate change

July 3, 2018 — The acting head of the U.S. agency that oversees the country’s oceans policy is downplaying remarks he recently made about climate change.

Last week, The Hill reported that Tim Gallaudet, the acting administrator for NOAA, gave a presentation at a conference put together by the U.S. Commerce Department where he floated a new mission statement for the agency. Gallaudet, a retired Navy rear admiral who also serves as the assistant commerce secretary for oceans and atmosphere, reports to Commerce Secretary Wilbur Ross.

Currently, NOAA’s mission statement begins with “To understand and predict changes in climate, weather, oceans, and coasts.” In his presentation, Gallaudet offered an amended mission statement that read: “to observe, understand and predict atmospheric and ocean conditions.”

The Union of Concerned Scientists released the presentation to the public. After its release, Gallaudet issued a statement saying he intended his remarks to show how NOAA could find new ways to work with in the Commerce Department’s strategic plan. He said his presentation was not to be considered as a finished product, according to The Hill.

“Secretary Ross, the Department, and I support NOAA’s mission to understand and predict changes in climate, weather, oceans and coasts; to share that knowledge and information with others; and to conserve and manage coastal and marine ecosystems and resources,” Gallaudet said. “We are also fully aware of the congressional mandates and will continue to adhere to them.”

Read the full story at Seafood Source