Retaliatory tariffs by Canada and the European Union are prompting marine dealers abroad to cancel orders of U.S.-built boats — the result of a “self-inflicted wound” the government has imposed on U.S. manufacturers, according to the National Marine Manufacturers Association.
This story by Reagan Haynes originally appeared in Trade Only Today.
The 10 percent tariffs by Canada on American-made boats and those announced by the EU, which are expected to be set at 25 percent, were a hot topic at the International Marine Certificate Institute and International Federation of Boat Show Organizers Congress in Germany this month, National Marine Manufacturers Association president Thom Dammrich told Trade Only Today.
The tariffs on boats will go into effect July 1.
“It is not surprising that orders from Canada and Europe are being cancelled,” Dammrich said. “I think, frankly, both of those export markets are just going to be frozen right now until people see what happens. Because you won’t be able to sell boats at those inflated prices.”
The tariffs were announced after President Trump imposed steel and aluminum tariffs on the country’s closest allies; Canada, Mexico, and the EU account for 70 percent of boat exports, said Dammrich.