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February 25, 2020

Maine lobster may be exempted from Chinese tariffs

In another sign that the heated two-year trade war between China and the U.S. may be cooling down, the Chinese government reportedly plans to free nearly 700 U.S. products — including lobster — from import tariffs.

The American goods, also including pork, soybeans and liquefied natural gas, could be exempt from the taxes for one year, effective March 2, according to widespread reporting Monday in national news media. But Chinese businesses would have to apply to purchase the products without the tariffs, and details are still sketchy.

The news comes a month after a trade deal signed by both countries committed China to buy more American goods and services, including lobster.

Maine’s congressional delegation has lobbied the Trump administration to pursue tariff reductions for lobster and to provide financial relief for lobstermen affected by the ongoing trade war between the U.S. and China.

On Tuesday, the four members of Congress issued a statement expressing cautious optimism about the exemptions.

“We welcome the promising development for Maine’s lobster industry that China may exclude $300 million worth of U.S. seafood imports from tariffs,” said U.S. Sens. Susan Collins, R-Maine, and Angus King, I-Maine, and U.S. Reps. Chellie Pingree, D-1st District, and Jared Golden, D- 2nd District.

“It is encouraging that China appears to be taking more steps to uphold the purchase agreements reached in the Phase One trade deal, and we will continue to monitor these developments to ensure China fulfills its obligation to buy American goods, including lobster, in amounts that exceed the level of purchases in 2017.”

In 2018, President Trump imposed a 25% tariff on up to $50 billion worth of Chinese goods. In turn, China imposed a 25% tariff on a host of imported U.S. products, including lobsters.

Previously, China had become the second largest importer of Maine lobster. During 2017 — the last full year before the tariffs went into effect — Chinese customers purchased $128.5 million of lobsters from Maine.

Data from the Maine International Trade Center showed that lobster exports to China plummeted 84% since China imposed its retaliatory tariff.

The lobster industry has 4,500 state-licensed lobstermen and supports the livelihoods of 10,000 additional Mainers. As a whole, the lobster industry has an economic impact of about $1.5 billion per year in Maine.

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