America is feeling the pinch in the oddest of market sectors as Chinese tit-for-tat tariffs bite back, putting the squeeze on US exports even when it comes to lobster.
According to recent reports the States “exported more than $142m worth of lobster to China last year, up from about $108m in 2016.”
But the lobster business in Maine, America’s most north eastern state, is experiencing ever-decreasing sales figures as the trade frostiness between the US and China refuses to thaw.
Declined sales took an even deeper dive recently after US President Donald Trump’s administration announced the imposition of yet more tariffs on Chinese goods, to which Xi Jinping’s government responded by doubling tariffs on American imports, among others produce from the States’ fisheries industry.
Described by many around states like Maine as a “lobster tariff”, the penalties had an immediate effect on projected figures for sales that were set to reach $75.3m compared to $34.2 the year before.
Hopes of high yields, however, have now been more than halved with some expecting to lose millions in previous profit predictions.
Stephanie Nadeau, a live lobster dealer from The Lobster Co, said her company used to export as much as 3.1 tons of lobster to China, accounting for at least 30 percent of her business, built up over two decades.
With around 30% of her business made up of exports to China, she said the drop-off in sales had had a severe effect on her business.
“We may survive this year, but we will not survive next year.”
In the meantime Maine, a “red” state that came out overwhelmingly in favour of Trump in the 2016 elections, has acquired somewhat of a bluish hue as tomorrow’s mid-term elections draw nearer.
