ST. JOHN'S, N.L. — The looming trade war between Canada and the United States was raising alarm throughout the Atlantic provinces on Monday as various economic players in the region calculated the financial toll of U.S. President Donald Trump's decision to impose hefty tariffs.
In Newfoundland and Labrador, the executive director of the Association of Seafood Producers said the province's most lucrative fishery is in jeopardy. "There cannot be a (crab) fishery, or there won't be a fishery, unless all parties take this as seriously as it needs to be taken," Jeff Loder told a news conference in St. John's.
"Discussions around income supports and other measures that would be put in place to deal with the outcome of not having a fishery are not the conversations that we want to have."
The tariffs are the biggest threat to the province's seafood industry since the 1992 cod moratorium, which wiped out about 30,000 jobs and a centuries-old way of life in Canada's easternmost province, he said.
On Saturday, Trump signed executive orders calling for 25 per cent tariffs aimed at Mexico and Canada, which include a lower 10 per cent tariff on imported Canadian energy. He also added a 10 per cent tariff on Chinese goods.
The 25 per cent tariff is widely expected to have a huge impact on Atlantic Canada's pivotal seafood industry.
About 96 per cent of the crab caught each year in Newfoundland and Labrador is shipped to the U.S., said Dwan Street, president of the union representing inshore fishers and fish plant workers. Crab exports were worth about $761 million in 2022, accounting for more than half of the province's $1.4-billion fishing sector.
The potential closure of the snow crab fishery would devastate rural Newfoundland and Labrador, where fishers are the economic heart of communities, Street said.
"The fishery is the lifeblood of rural Newfoundland and Labrador," she said. "There are also adjacent industries. You're looking at the grocery store, the gas station, the trucking industry. The effects trickle down. It's not just jobs at risk, it's coastal communities at risk."
According to the latest trade date, Atlantic Canadian exporters sold $26 billion worth of goods to the United States in 2023. Key exports include refined petroleum, shellfish and fish, crude oil, tires and rubber products, forest products, and processed potatoes and other foods.
Meanwhile, a group that represents energy producers, distributors and consumers in Atlantic Canada says the trade war could have a major impact on the fully integrated energy system that links the region with New England.
The non-profit Atlantica Centre for Energy issued a statement Monday saying 80 per cent of the vehicles on the road in New England are powered by fuel from Canada. As well, New Brunswick's Crown-owned electric utility, NB Power, has long been the primary source of electricity for northern Maine, which is not directly connected to the U.S. electricity grid.
"New England depends on Canada for its energy needs with $10.2 billion worth of fuel oil, natural gas and electricity imported to the region from Canada each year," said a statement from the centre, which represents Irving Oil, NB Power, Nova Scotia Power, Maritimes and Northeast Pipeline, and several other energy-related businesses and organizations.
"With few to no short-to-medium-term alternatives, the proposed tariffs will only make it more expensive for the people and businesses that are already facing inflationary pressures."
New Brunswick and P.E.I. are among the Canadian provinces most dependent upon trade with the United States. More than 90 per cent of New Brunswick’s exports are destined to the U.S., about half of which is refined petroleum products from the Irving Oil refinery in Saint John.
“This trade war makes zero sense," said Michelle Robichaud, the centre's president. "Consumers and businesses on both sides of the border will see higher energy prices and a step backwards in the energy security we all rely on .... There will be no winners."
Robichaud said tariffs imposed by the United States and retaliation by Canada will disproportionately affect the entire northeast region on both sides of the border.
A Narrative Research survey of 1,618 residents of Nova Scotia, New Brunswick and P.E.I. — conducted between Jan. 30-31 — found that 62 per cent of respondents said they would spend less time travelling in the U.S., with the top reason being "dissatisfaction or disagreement with (Trump’s) leadership, values and administration." One-third of those who said they would curtail their travel plans cited "financial reasons" specifically related to tariffs, and opposition to Trump’s economic policies.
A similar survey in December found only 37 per cent of respondents were expecting to travel less in the United States.
The latest poll found that 26 per cent of those surveyed said their travel plans to the United States would not change, while three per cent said they would travel more and nine per cent said they didn't know. As well, the results show that those aged over 55 were the most likely to say they would curb their travel to the U.S. in the coming year.
This report by The Canadian Press was first published Feb. 3, 2025.
— With files from Michael MacDonald in Halifax.
Sarah Smellie, The Canadian Press
