Lobstermen around the US this week breathed a sigh of relief — lobsters themselves probably less so — after China announced that it would let businesses apply for tariff exemptions on the American crustaceans.
![Lobsters are finally out of the trade war steamer](https://20627419.fs1.hubspotusercontent-na1.net/hub/20627419/hubfs/The%20Hustle/Assets/Images/1212787128-2020-News-Brief_2020-02-28T030433.959Z-1.webp?width=595&height=400&name=1212787128-2020-News-Brief_2020-02-28T030433.959Z-1.webp)
The exemptions mean businesses could shell out less for Uncle Sam’s tails. As it turns out, China loves them:
- Maine was on track to export $87m worth of lobster to China through June 2018 — more than double the amount exported through the same period in 2017.
- Then, as the trade war reached a fever pitch, China clamped down with a round of lobster tariffs — first at 25%, then 35%.
- Within less than a year, US lobster exports had tumbled by more than 80%.
China satisfied its lobster cravings by sliding into the DMs of a favorite sidepiece: Canada. Which, to be fair, boasts the same lobster species as Maine.
The market is clawing its way back to profitability
The news rounds out a prickly period in the lobster world, including a price crash in Florida and South Africa after the coronavirus forced China to cancel seafood imports. Those seafood bans are still in place.
But a Maine delegation finally made nice with China. Under the new exemptions, lobster tariffs could go as low as 7%.
That’s no small catch: The lobster industry contributes $1B to Maine’s economy.