• China imposed a 25 percent retaliatory tariff on US lobsters, during peak season, in response to US president Donald Trump’s trade war. 
  • The state of Maine’s $1.5 billion lobster industry is now feeling the pinch as a key source of revenue dries up.

The US state of Maine is feeling the effects of US President Donald Trump’s trade war with China. 

On July 5, China imposed a 25 percent retaliatory tariff on US lobsters, during peak season. Maine’s $1.5 billion (R28.8 billion) lobster industry is now feeling the pinch as revenue dries up in favour of cheaper local produce in China.

Photo by VCG/Getty Images

Before China levied its lobster tariff, it was on pace to double its lobster imports this year, with US export data showing year-to-date sales of $75.3 million through June compared with $34.2 million over that same period in 2017

Stephanie Nadeau, a live lobster dealer from The Lobster Co, was selling R1.45 million of lobster to China every day, with a customer base that took 20 years to build. They would export between 2.2 – 3.1 tonnes a day, seven days a week.

China accounted for 30% of the company’s sales.

“We may survive this year, but we will not survive next year,” said Nadeau

She estimates that the tariffs will cost her company $10 million in 2018 sales

Receive a single WhatsApp every morning with all our latest news: click here.

Also from Business Insider South Africa: