Tuesday, the Trump administration proposed 200 billion dollars in new tariffs on China, upsetting markets worldwide.
Michael Kohan, with the Alaska Seafood Marketing Institute, says those new tariffs include some that may affect Alaska seafood.
“This last recent development on July 11, the U.S. is going to impose 10 percent tariff on imports from China, which could include Alaska seafood product that has gone to China for reprocessing and then is being imported into the U.S. for the domestic market,” said Kohan.
Alaska seafood processors often head and gut fish then send them to China for secondary processing, and they are exported back to the U.S. or to other countries from there.
In June, China announced it would increase tariffs on U.S. seafood products in response to those set earlier by the U.S.
China added 25 percent to the existing tariffs on July 06.
After the decision, industry analysts said seafood reprocessed in China and then exported back to the U.S. would be exempt from the tariffs.
But this new announcement looks like it changes that.
That would be a major shift. China is the largest trading partner for Alaska seafood and is a major reprocessing sector for the U.S.
ASMI officials say Alaska companies export approximately $1 billion worth of Alaska seafood to China annually. Pollock, salmon, and Pacific cod make up the bulk of Alaska fish sent to China for reprocessing, according to ASMI, and they’re included on the new tariff list.
ASMI has been active in the Chinese market for over 20 years, but Kohan says that could change.
“We have a large international market that we can apply our seafood to. So, as much as we are focussing on China right now, there are growing markets in other countries around the world,” said Kohan. “We will be trying to be able to develop markets that will enhance Alaska seafood in these markets that are growing in countries like Spain and Brazil.
ASMI officials say they’ll continue to analyze what the latest tariff announcement means for Alaska seafood, and they plan to submit comments to the Office of the United States Trade Representative.
The latest proposed tariffs would go into effect in September.