US Considering Relief for Lobster Exporters Affected by Chinese Tariffs
The U.S. is considering providing relief to U.S. lobster exporters hit by Chinese retaliatory tariffs and will more closely examine whether China is meeting its seafood purchase commitments under the phase one trade deal. The White House said June 24 it may provide aid to the seafood industry for China’s “unjust retaliatory tariffs,” and President Donald Trump directed the Office of the U.S. Trade Representative to submit monthly reports on Chinese seafood purchases and the value of lobster exports to China.
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Although China has allowed companies to apply for tariff exemptions for certain imports from the U.S. (see 2002180039), the White House said “it remains unclear” if those exemptions “will result in increased exports of United States lobster.” If the USTR finds that China is not meeting its purchase commitments, the U.S. may impose retaliatory tariffs on Chinese seafood imports, the White House said.
The White House also said U.S. lobster exporters have been “significantly and negatively affected” by the Comprehensive Economic and Trade Agreement between Canada and the European Union. Trump ordered the USTR to study how the CETA has affected U.S. lobster exports and to recommend “appropriate actions that may be taken to minimize or eliminate any negative effects.”
The White House announcement was praised by Maine lawmakers. Republican Sen. Susan Collins said June 25 that the aid is a “welcome development for this industry that has suffered substantial losses due to the trade war and COVID-19.” Sen. August King, an independent, said the measure will “boost Maine's lobster industry during a time of immense challenges” but said Maine would have preferred the aid sooner. “Better late than never,” he said June 25.