July 11, 2019 — In Massachusetts, lobster is about as local a food as you can hope to find. These days, it’s also likely to be on the menu in Beijing and Shanghai. China has become a major lobster importer.
But one year into the U.S. trade war with China, U.S. lobster sales to China are down, and coastal communities — including Gloucester — are feeling the pinch.
Vince Mortillaro, who runs a lobster wholesale company in Gloucester, has worked over the last decade to capitalize on the demand for lobster from China, developing systems that enable him to ship fresh lobster from Gloucester to China in 36 hours and spending $3 million to build a new dock and warehouse to hold extra product.
The payoff was enormous: a 30 to 40 percent jump in business.
Then the trade war began, and lobster, like soybeans and steel, was caught in the cross hairs. In response to U.S. tariff increases on Chinese goods in July 2018, China raised tariffs on U.S. imports — including lobster. It now costs Chinese companies an extra 25 percent to buy lobsters from the U.S.
“We’re down over $6 million in sales,” said Mortillaro. “Over a million dollars a month.”
But China is still importing plenty of lobster — now, from Mortillaro’s competitors in Canada. In the wake of raising U.S. lobster tariffs, China lowered tariffs on Canadian lobsters to 7 percent.