September 11, 2026

On Friday, September 11, 2026 NMMA Canada issued the following notice to their members regarding the Canada-US trade measures:

Following the latest escalation in Canada-U.S. trade measures, we want to make members aware of federal programs that may provide support to Canadian businesses affected by tariffs and broader trade disruption.

Beginning September 15, the United States will impose an additional 50 per cent tariff on several classifications of Canadian recreational motorboats under Section 338. The affected classifications include:

            • 8903.31.00 – Motorboats, other than inflatable, not exceeding 7.5 metres;

            • 8903.32.00 – Motorboats, other than inflatable, over 7.5 metres but not over 24 metres;

            • 8903.93.20 – Outboard motorboats not exceeding 7.5 metres; and

            • 8903.99.21 – Outboard motorboats 7.5 metres and over.

Government of Canada trade data shared with NMMA Canada indicates that Canadian exports to the United States across these four classifications totaled approximately US$93.1 million in 2024, highlighting the significant direct exposure of Canadian recreational marine manufacturers to the new U.S. measures.

The impact may extend beyond finished boats. Canada’s recreational marine industry operates within highly integrated North American supply chains, with boats, engines, components and manufacturing inputs frequently crossing the border during production and distribution. Therefore, companies may face reduced U.S. demand, higher input costs, supply-chain disruption and broader tariff-related pressures.

Based on the U.S. measures published to date, these recreational boat classifications are subject to the additional 50 per cent tariff beginning September 15 but are not currently included in the separate U.S. import prohibitions scheduled to take effect September 29.

Regional Tariff Response Initiative

The Regional Tariff Response Initiative (RTRI) provides support to small and medium-sized businesses affected by U.S. tariffs, Canadian counter-tariffs and associated trade disruption. Delivered through Canada’s Regional Development Agencies, the initiative is intended to help businesses address immediate pressures while strengthening longer-term competitiveness and resilience.

Depending on the business, region and nature of the tariff impact, support may be available for activities such as:

            • addressing tariff-related liquidity pressures;

            • productivity and automation investments;

            • supply-chain diversification and optimization;

            • identifying alternative suppliers;

            • developing new Canadian and international markets;

            • reducing exposure to tariff-related costs;

            • reshoring or expanding Canadian production; and

            • other investments that strengthen business resilience

Members experiencing reduced export sales, higher costs, disrupted supply chains or other tariff-related impacts are encouraged to contact their Regional Development Agency as early as possible to discuss their circumstances and potential eligibility.

Importantly, the RTRI may also be relevant to Canadian dealers, marinas and other marine businesses that are not themselves exporters. Businesses may be able to demonstrate indirect exposure through significant increases in the cost of boats, engines, parts or other inputs, supply-chain disruption, or reductions in revenue or customers resulting from the tariffs.

For businesses facing immediate pressures, eligible support may include liquidity assistance for operating costs such as employee wages, commercial rent, utilities, insurance and property taxes. Longer-term support may also be available for projects that improve productivity, diversify supply chains or markets, and reduce future trade-related exposure.

Canada Strong Diversification Fund

The Government of Canada has also launched the Canada Strong Diversification Fund through Innovation, Science and Economic Development Canada’s Strategic Response Fund.

Of particular interest is Stream 2: Capital Maintenance, which provides non-repayable funding to businesses directly or indirectly affected by the new U.S. Section 338 tariffs.

The stream is designed primarily for larger businesses and projects. Current eligibility criteria include:

            • at least 10 full-time equivalent employees;

            • at least $20 million in annual revenue;

            • average annual capital expenditures of at least $5 million over the previous three fiscal years; and

            • demonstrated direct or indirect exposure to the new Section 338 tariffs.

Funding requests under Stream 2 are expected to range from $5 million to $30 million.

While recreational marine manufacturing is not specifically identified as a priority sector, the program indicates that “other tariff-affected sectors may also be considered”.

Given that Canadian motorboats have now been specifically added to the U.S. Section 338 tariff measures, manufacturers that meet the applicable thresholds should review the program and consider contacting ISED regarding potential eligibility.

Other Federal Supports

The Government of Canada also maintains a central Support for businesses and industries impacted by tariffs portal outlining other programs and mechanisms that may be available depending on a company’s circumstances.

These may include:

            • tariff remission requests;

            • Duties Relief and Drawback programs;

            • financing and liquidity support;

            • export and market-diversification assistance; and

            • other federal programs intended to help businesses respond to trade disruption.

What NMMA Canada Is Doing

NMMA Canada is actively engaging the federal government regarding the impact of the new U.S. tariffs on Canadian recreational marine manufacturers.

We are also emphasizing the importance of ensuring that recreational boats, marine engines and other core marine products are not included in any future expansion of Canadian retaliatory tariffs. In a highly integrated North American supply chain, additional Canadian tariffs could increase costs for consumers as well as Canadian manufacturers, dealers, marinas and other marine businesses that depend on U.S.-sourced products and components.

NMMA Canada is also coordinating closely with our U.S. Government Relations team to align industry messaging on both sides of the border and to advocate for relief from measures affecting the integrated North American recreational marine industry.

We Need to Hear From Affected Members

If your company is experiencing tariff-related impacts, we encourage you to share specific examples with NMMA Canada. Useful information includes:

            • the value or volume of Canadian production exported to the United States;

            • orders that have been delayed, cancelled or placed at risk;

            • Canadian jobs or production that could be affected;

            • increases in the cost of boats, engines, components or manufacturing inputs;

            • U.S.-sourced products or materials affected by Canadian tariffs;

            • supply-chain disruptions or difficulty identifying alternative suppliers;

            • impacts on dealer, marina, service or storage activity; and

            • other immediate commercial or operational impacts.

Concrete company-level examples are extremely valuable in our discussions with government and strengthen our ability to advocate for appropriate relief and support.

Members are also encouraged to contact their local Member of Parliament to ensure the impacts facing their business and region are understood.

If you have any tariff related questions, require assistance identifying the appropriate federal program, connecting with your Regional Development Agency or ISED, or reaching out to your local MP, please contact Patrick Pereira, NMMA Canada’s Senior Manager of Government Relations atppereira@nmma.org.