The recent imposition of reciprocal tariffs by the United States and China could have a significant impact on Alaska seafood prices. With over half of Alaska’s fish being sent to China for processing before being re-exported to the US, the new tariffs are expected to increase costs for processors and ultimately consumers. China’s use of cheap labor, including forced labor, in processing facilities has been a common practice for Alaska seafood products like pollock and salmon.
The dual tariffs now in place are expected to increase the cost of processing, which could potentially soften demand for wild Alaska salmon. This may lead to a surplus of seafood in the US market, potentially depressing wholesale prices paid to Alaska fishermen and processors. As a result, some processors may turn to domestic processing, which has higher labor costs associated with it than processing in China.
The dynamics of the US-China tariffs will likely reduce demand and increase costs in the short-term, but could also boost domestic jobs in the seafood processing industry. The temporary use of H-2B visa workers may become more critical for Alaska fishing companies, particularly during the Bristol Bay salmon runs. As labor markets and supply chains adjust to the new tariffs, Alaska’s fishing industry and US consumers will need to adapt to the changing conditions.
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Photo credit mustreadalaska.com
