Following the formal announcement of the United States-Mexico-Canada Agreement (USMCA) on Oct. 1, both the RV Industry Association and the National Marine Manufacturers Association voiced their support of the agreement.
The RVIA declared the USMCA a victory for the RV industry as motorhomes and travel trailers will get to keep the previous rules of origin that were set up by NAFTA. Those rules state that domestic content must make up 62.5 percent of motorhomes and 50 percent travel trailers in order for those items to be considered duty-free.
Similarly, the agreement was applauded by NMMA for continuing the rules of origin for marine engines and boats set by NAFTA. However, the USMCA does not remove the Section 232 tariffs on aluminum and steel nor the retaliatory tariffs imposed by Canada and Mexico. The retaliatory tariffs by Canada and Mexico directly targeted US-made recreational boats.
“The USMCA is a step in the right direction for the RV and boating industries,” said Dan Debelius, Freedonia Group analyst. “Both of these industries have rebounded well from a tough post-recession period, but the recent tariffs and retaliatory actions have staunched some optimism and hindered sales. While it remains to be seen what the full effects of the current tariffs will do, exports to Canada and Mexico have stalled this year.”
The Presidents of NMMA and NMMA Canada are optimistic that these additional issues will be resolved, stating “that yesterday’s agreement puts us on a path to remove Section 232 tariffs and subsequent retaliation.”
“The Section 232 tariffs and the tariffs affecting components imported from China were and remain harmful for both the RV and boating industries,” said Debelius. “Moreover, the boating industry was hit with retaliatory tariffs from Canada, Mexico, and the EU, and most recently, China, on U.S.-made recreational boats. The longer that these tariffs remain in place, the more harm it will do to these thriving industries.”
