The US National Marine Manufacturers Association (NMMA) opposes the Section 301 tariffs announced by the Trump Administration in the week-ended June 15. The 25 percent tariffs on the approximate $50 billion in select Chinese products includes nearly 300-marine related parts, including engines and navigational equipment. The additional cost to consumers due to the tariffs on Chinese products could be approximately $2,000 per unit. According to the press release, “Collectively, these tariffs are causing the prices of raw materials and marine parts to rise rapidly and stifling US boat exports and are negatively affecting the American recreational boating industry.”
The NMMA noted that Section 232 tariffs, Section 301 tariffs, countervailing and anti-dumping duties, plus retaliation for the largest trading partners is hurting the industry. The EU has formally approved a 25 percent tariff on US recreational boats while Canada is applying a 10 percent tariff and Mexico a 15 percent tariff on the product. Canada, EU and Mexico account for 69 percent of annual US exports according to the NMMA.
The $39 billion US recreational boating industry supports 650,000 jobs in the US according to the press release. Additionally, 95 percent of boats sold in the US are made in the US and the additional costs hit US consumers directly.
The press release further noted that aluminum has increased by 20-30 percent. Alloy aluminum sheets is a primary material used in 44 percent of new boats built in the US.