Grieg shares down after Trump’s tariff threat

Southern neighbours Mexico, along with China, are being targeted as well as Canada. President-elect Trump said this morning he would impose 25% tariffs on Canada and Mexico, and 10% on Chinese goods, until all three countries are able to play their part in tackling the USA’s problems with drugs – particularly the synthetic opiate fentanyl – and illegal migration.

In his last term as President, Trump himself negotiated a free trade deal with Canada and Mexico which these new tariffs, if implemented, would appear to reverse.

Grieg Seafood, which has built up an extensive operation in Canada, saw its shares fall sharply on the Oslo Stock Market on the news.

Grieg sold its Scottish business two years ago in order to concentrate on British Columbia (BC) and it since expanded into Newfoundland with a new salmon farming operation.  Its shares fell by almost 6% in Oslo yesterday.

Mowi, which also has a salmon farming business in BC, but it is less dependent on that area than Grieg. Its shares also fell yesterday but by the lower figure of 1.6%.

Canada is not a happy hunting ground for salmon farmers at the moment. Grieg froze its BC investments earlier this year following the Canadian government’s decision to ban open pen salmon farming.

It said BC was open to all possibilities including linking up with a salmon partner. There is, so far, no problem with Newfoundland other than Trump’s likely tariff on salmon from that province.

At the moment no-one is sure if Trump really intends to carry out the threat. He could also extend it to include Norwegian, Faroese, Iceland and even UK salmon exports to the US, but has so far drawn back from that.

Little wonder that salmon farmers are feeling more than nervous at the moment.