Atlantic Canada's lobster industry faces economic pinch as global turmoil bites

A season of uncertainty

Lobster harvesters across Nova Scotia, New Brunswic and Prince Edward Island are expressing deep concern over this year’s prices, which are reportedly among the lowest in recent memory. Some fishers are even opting to forgo the season entirely, citing unsustainable economics.

“I would say the prices have never been lower than this, when you recognize the extreme upswing in costs to harvest lobster,” Colin Sproul of the Bay of Fundy Inshore Fishermen’s Association told Global News.

“I hear reports of our membership in southwest Nova Scotia giving up on the season and landing their traps because they can’t fish at the prices that are being offered to them.”

The Maritime Fishermen’s Union reports that buyers’ prices are hovering around $6 to $6.50 per pound, a figure they deem “unreasonable and an insult to fishers,” according to union executive treasurer Bruce Wilson.

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Trade tensions and rising costs squeeze Atlantic Canada’s lobster ondustry

The lobster industry in Atlantic Canada is facing a perfect storm of challenges, amplified by escalating international trade tensions and rising operational costs. In March, China imposed a 25% tariff on Canadian seafood, including lobster, in retaliation for Canada’s tariffs on Chinese-made electric vehicles and other goods. As Canada’s second-largest seafood export market in 2024, worth $569 million, China’s decision has shaken the industry, disrupting a crucial export channel.

“This is going to present itself as a challenge, there’s no doubt,” Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, told The Canadian Press in March. “Essentially, the landscape has fundamentally changed.” Meanwhile, the U.S. remains the dominant market for Canadian lobster, accounting for $1.9 billion in exports.

The shift in global trade is compounded by rising costs on the ground. Fuel, bait and gear prices have surged, putting additional pressure on fishers already facing lower dockside prices. These combined challenges are prompting concern that consolidation and restructuring may become more common, particularly among smaller, independent operators.

Historically, the lobster fishery has been a cornerstone of Atlantic Canada’s economy, with the industry benefiting from strong global demand, especially from Asian markets. But the landscape has shifted dramatically over the past year, forcing the industry to navigate new, uncertain waters.

Back in 2020, the $1 billion sale of Clearwater Seafoods to a joint venture with Mi'kmaq First Nations was seen as a moment of growth and diversification. Now, the same export ambitions that drove that deal are being tested by geopolitical instability and market volatility.

What this means for coastal economies and local finances

The impact of these developments goes well beyond the wharf. In communities heavily dependent on fishing, lower earnings for lobster harvesters translate into reduced spending at local businesses, tighter household budgets and ripple effects throughout the regional economy.

For workers and business owners tied to the seafood supply chain, from processors to truckers to retail suppliers, shifts in global demand and local harvest volumes can affect jobs and income stability. A downturn in lobster revenues might also slow investment in vessels, equipment upgrades or succession plans for family-owned fishing licenses.

And for anyone invested — literally or emotionally — in Canada's resource-driven industries, this moment serves as a broader economic reminder. Industries tied to global trade can boom during favourable conditions but are just as vulnerable to sudden shifts in policy, price or demand. Having a financial buffer, diversifying income sources or following regional economic trends closely can offer a practical hedge against this kind of volatility.

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Navigating uncertain waters

With the U.S. market still offering some stability, industry leaders are seeking ways to expand domestic sales, explore secondary markets and strengthen branding efforts around sustainability and Indigenous-led stewardship. But rebuilding trade momentum won’t be quick or easy.

For the thousands of Canadians whose livelihoods depend on that landscape, how they adapt may shape the future of Atlantic seafood for years to come.

Atlantic Canada’s lobster industry is facing one of its toughest seasons in years. Prices are down, global markets are shifting and uncertainty hangs in the air. But if there’s one thing the region’s fishers and processors have shown time and again, it’s resilience. They’ve weathered storms before, literal and economic, and continue to adapt with grit and determination.

With the right support and strategic planning, the industry still has room to adjust, recover and find stability in a changing world.

Sources

1. Global News: Lobster fishers raise alarm about low Canadian prices, some giving up on season (May 2, 2025)

2. The Canadian Press: China tariffs on Canadian seafood add more volatility to industry threatened by Trump (March 10, 2025)