China Extends Tariff-Free Access for Canadian Lobster and Crab Through 2028
China has agreed to maintain tariff-free access for Canadian lobster, crab, and other agricultural products until the end of 2028. The extension provides certainty for Nova Scotia's seafood industry as exporters prepare for the winter season and Lunar New Year demand.
The federal government announced on Wednesday that China will maintain tariff-free access for Canadian lobster, crab, canola meal, and peas until the end of 2028. Under the agreement, China removed its 25 per cent retaliatory tariffs on specific Canadian products. In return, Canada agreed to allow up to 49,000 Chinese electric vehicles into the Canadian market annually at a 6.1 per cent tariff rate.
International Trade Minister Maninder Sidhu stated the arrangement supports sectors sustaining more than 600,000 jobs in Canada.
The decision brings relief to Nova Scotia's seafood sector, which generated about $2.2 billion in exports in 2025 and supported approximately 19,000 jobs. Live lobster exports from Nova Scotia to China fell from an average of about 23,000 tonnes in 2024 to just 8,500 tonnes in 2025 due to the tariffs.
Tariffs were previously removed in March 2026, leading to a market recovery. Shipments of live lobster to China reached 2,250 tonnes in August and September 2026, compared with 1,450 tonnes during the same period in 2025. Lobster exports to China reached $278.6 million in the first nine months of 2026, accounting for 13.8 per cent of Canada’s total lobster exports.
The two-year extension eases concerns about duties returning as early as Jan. 1 and provides certainty for the busy winter lobster season. It allows exporters to plan shipments effectively for Lunar New Year demand in January and February, helps rebuild momentum in the Chinese market following previous declines, and supports rural coastal communities dependent on the seafood industry. The arrangement also enables movement of inventory despite slower U.S. market conditions.
Broader trade figures underscore the scale of the relationship. Canadian merchandise exports to China totalled $35 billion in 2025, while two-way trade reached $125.7 billion.