With Trump's tariffs, American importers will lose $350 million a year

US President-elect Donald Trump said on social media on the 25th that he would impose a 25% tariff on all imports from Mexico and Canada and a 10% tariff on Chinese goods.

It has been calculated that once these measures are in place, US importers will lose $1.2 billion a year. Trump launched a trade war with China during his first term as president (2017-2020), with US importers paying $350 million a year in tariffs, a policy that has not changed during Biden's term.

In 2023, the United States imported 271,505 tons of seafood from Canada, worth $3.6 billion, and Canada is the United States' largest trading partner, with a 25% tariff equivalent to $890 million. Among the items hit hardest by tariffs are lobster (40,522 tonnes in 2023, valued at $1.2 billion), salmon (72,628 tonnes, valued at $720 million) and frozen snow crabs (53,416 tonnes, valued at $685 million).

The United States imported 77,995 tons of seafood from Mexico last year, worth $1.5 billion, and the 25 % tariff equates to $162 million. Major imports include shrimp (15,640 tonnes valued at US $196 million), tuna (20,038 tonnes valued at US $147 million) and snapper (4,978 tonnes valued at US $52.5 million).

In addition, the United States imported 335,995 tons of seafood from China last year, valued at $1.5 billion, and China is the seventh largest trading partner of the United States. U.S. importers paid nearly $220 million last year as a result of the 25% tariff, and an additional 10% tariff would raise taxes by $153 million a year.

The most affected commodity is frozen tilapia, with the United States importing 112,811 tons of tilapia from China in 2023, worth $317 million, and importers paying $77.1 million in tariffs. An additional 10% tariff could add about $32 million to the cost.

Earlier, the United States exempted some seafood imports from tariffs, and last year imported 30,607 tons of cod from China, valued at $281 million, paid only $1.3 million in tariffs; While the U.S. imported 27,963 tons of wild salmon last year, worth $215 million, importers paid only $689,465 in tariffs.

Most economists believe the tariffs will lead to higher inflation in the United States, costing the average American family more than $2,600 a year. On the other hand, the US index rose strongly, the Canadian dollar immediately fell 1.2% against the US dollar, the Mexican peso fell 2% against the US dollar, and the offshore yuan was quoted above 7.26 against the US dollar.

Reference: UCN