June 5, 2018 

Canada Announces Tarrif Boats 400Talk about starting the month on an explosive note. On Thursday, May 31, the Trump administration announced that it would proceed with applying new import tariffs of 25 percent and 10 percent respectively on all steel and aluminum imported into the US from Canada, Mexico, and the European Union (EU). In retaliation, all three trading partners announced their own tariffs on US-made goods. In Canada’s case, effective July 1 new Canadian import duties go into effect on a variety of US-made goods – including a new 10 percent tariff on boats.

Inflatable boats, sailboats, and both outboard-powered and inboard-powered motor boats are specifically identified on a Canadian government list of US-made goods which will be subject to the new tariffs. “Aluminum boat manufacturers are directly impacted, obviously, but so are fibreglass boats,” said Campion Marine president Brock Elliott. “Our molds are framed in steel. Our windshields have aluminum extrusions. Our ski pylons and fasteners are stainless steel. The trailers are made of steel. In the end it’s the consumer who pays. We want to grow boating, we don’t need additional costs.”

Added costs to ship aluminum or steel goods over the border represent a significant challenge to the recreational boating industry, given the tremendous level of cross-border integration that exists in both the supply chain and wholesale distribution aspects of the business.

“These tariffs have obviously been looming for a while and we’ve been watching them because they impact us for both steel and aluminum, which we use in boats and boat trailers,” said Legend Boats president and co-CEO, Marc Duhamel. “Many of the products that the Canadian government has decided to apply new tariffs to are things like maple syrup, goods that we have a large enough domestic supply of that they really don’t have to be imported. But our supply of boat manufacturing has no surplus. The builders that are located here in Canada can’t possibly keep up with the volume of product that’s currently coming in from the US. So applying tariffs on boats is only going devastate the industry, both here in Canada and south of the border. This year we were already expecting price increases, now these extra tariffs will simply drive prices up to the point I’m worried that consumers will just shut off and walk away.”

National Marine Manufacturers Association (NMMA) president Thom Dammrich called the new tariffs “an unmitigated disaster.” In a statement to the industry and lawmakers, Dammrich wrote “Simply put, these tariffs are a disaster for our industry. All types of recreational boats are on the retaliatory lists from both Canada and the EU. As a result, rather than protecting American manufacturing, these tariffs directly harm the entire recreational boating industry – one of our country’s enduring industries. To make matters worse, Canada, Mexico, and the EU are the top three export markets for American-made marine products and in 2017 they accounted for nearly 70 percent of marine exports."

Canadian prime minister Justin Trudeau is expected to meet with Trump and other trading partners this week at the 44th G7 Summit, being held in La Malbaie, Quebec. The prime minister called president Trump’s assertion that the US tariffs represent a national security interest as absurd and insulting. “We will continue to make arguments based on logic and common sense, and hope that eventually they will prevail against an administration that doesn't always align itself around those principles," he said.

“There is still time for political leadership on both sides of the border to come to their senses,” said Duhamel. “I’m hoping this issue can be resolved and be chalked up to a bad memory. We definitely need all of our advocacy efforts through NMMA and our industry efforts to be directed to our government saying do not destroy us as an industry. Because as things stand right now, nobody wins.”

Featured Articles

  • Prev
Following months of negotiations and meetings on the subject, Rick Layzell, CEO of Boating Ontario ...
The International Marine Institute (IMI), the training subsidiary of the Association of Marina ...
ABYC has partnered with the National Association of State Boating Law Administrators (NASBLA) ...
A new Canadian House of Commons International Trade Committee report finds that retaliatory tariffs ...
Climb aboard sailboats on display in the water and on land at the Annapolis Spring Sailboat ...
Bob Pappajohn, the owner of M&P Mercury received Boating Industry Canada’s Employer of Choice ...
At the 2019 Toronto International Boat Show, Canadian Yachting magazine editor Andy Adams had the ...
A revolutionary “assisted docking” system that provides a glimpse into the future of boating ...
Georgian College through their Midland, Ontario campus is offering a three-day ABYC Electrical ...
On Friday, January 18th in the Heritage Court at the Toronto International Boat Show, News Week ...

CANADIAN HOUSE OF COMMONS TRADE COMMITTEE REPORT HIGHLIGHTS IMPACT OF RETALIATORY TARIFFS, URGES SWIFT RESOLUTION

 

NMMA CanadaA new Canadian House of Commons International Trade Committee report finds that retaliatory tariffs are taking a toll on Canada’s economy and calls on the government to work with the U.S. on resolving the issue. The study – titled “Section 232 of the United States Trade Expansion Act: Implications of Tariffs for Canada” – includes specific mentions of the recreational boating industry’s hardships from aluminum and steel tariffs and subsequent retaliation measures – a key win for the industry, which NMMA Canada and the Provincial Marine Trade Associations helped secure through written submissions and advocacy efforts. The Canadian government now has 60 days to respond to the committee’s report.

Read More from Retaliatory Tarrifs...

 

Marine Products

  • Prev
As northern boat owners start taking off winter covers, their southern counterparts are deep into ...
Powerful amplifiers tend to be large and heavy. Not so with the new JBL by Harman multi-element, ...
Evinrude announced today the launch of a new addition to its line of color ...
TRīB Outdoors Tech has launched the first ever pressure gauge cap for inflatable SUP’s, RIB’s and ...
For Will and Sarah Curry, sailing the South Pacific was something they bonded over on their very ...
Weego, makers of portable jump starters has announced the launch of Crankenstein™ Jump Starting ...
E-Plex integrates all onboard electronic systems into a common shell, distributing the information ...
A consistent challenge that every boat owner faces is keeping their boat clean. It is an ...
“This is a very popular horsepower in Canada so there are a lot of boaters who will benefit from ...
Salt-X has become a new member of Boating Atlantic. The Salt-X product is a concentrated ...

People

  • Prev
Marine electronics pioneer Darrell Lowrance, 80, passed away Saturday morning after suffering a ...
Extremely popular and well respected for leading the reemergence of Iconic Marine's three ...
Raymarine's ClearCruise Augmented Reality (AR) system was chosen as the best marine ...
On January 27th in Cortina d’Ampezzo Italy, Boat International Media hosted the Superyacht Design ...
West Marine, the world’s largest boating supply retailer, has hired retail executive Ken ...
Groupe Beneteau is announcing Christophe Lavigne’s appointment as President of US brands Four ...
Weems & Plath President Peter Trogdon has announced a “Change of Watch” at the company he ...
North Sails are pleased to announce that Robert Greenhalgh has joined the team. A key hire ...
We are delighted to tell you that Les Sparks is celebrating his 45th anniversary with Mercury ...