Maine’s lobster industry at boiling point as Chinese tariffs on US imports take effect

Tom Adams pulled out an eight-pound lobster, which, with its claws swinging out and body stretching, seemed to be ready for a fight.

“He’s strong and healthy enough to make it to China,” said Adams, owner of Maine Coast Company, a wholesale lobster supplier.

In 2017, the company shipped more than 7 million pounds of live lobsters overseas and about 25 percent of the feisty ones went to the Chinese market. Having shipped lobsters to China for six years, Adams sees growing market potential in the country.

He is expanding the company’s facilities, which can already hold 160,000 pounds of live lobsters, hoping to be able to handle more and then ship it to the world’s fastestexpanding lobster market.

But the US tariff scheme against China may well ruin his plan. On Friday, the US imposed a 25 percent additional tariff on Chinese products worth $34 billion. In response, China announced additional tariffs on imports of equal worth from the US, which took effect on the same day. And lobsters were on the list.

US President Donald Trump has claimed that “trade wars are good and easy to win,” vowing that temporary disruption will end in better terms for American businesses. But, the trade war he unilaterally pursues will deal Maine’s lobster industry with a heavy blow.

Lobsters harvested in the US and Canada are of the same species and shipped to Chinese consumers.

China’s tariff on Canadian lobsters dropped to 7 percent at the beginning of this month, while the tariff on US lobsters has risen to 40 percent.

The huge price disadvantage, if long-lasting, could wipe out US lobster dealers’ sales to China.

“Hopefully we can resolve that situation between the US and China as fast as possible because it will have a direct impact on both our sales here at Maine Coast [and] the US lobster industry, and our customers in China’s preference of doing business,” said Adams.