NMMA CANADA PROACTIVELY MOVES TO ADDRESS TARIFFS, LUXURY TAX THREATS TO THE INDUSTRY IN 2020/21
Oct 6, 2020
Despite the successful season enjoyed by many boating businesses, there are risks looming on the horizon for the recreational boating industry. For example, this past August President Trump announced a 10% tariff on raw Canadian aluminum being imported into the United States. This move took the political and business world by surprise given the recent coming-into-force of USMCA/NAFTA 2.0. As soon as rumours appeared about possible tariffs, Sara Anghel and NMMA President Frank Hugelmeyer co-wrote a letter to President Trump and Prime Minister Trudeau urging them to avoid another trade dispute. Once the tariffs were formally announced and Canada released its draft set of counter-measures, NMMA partnered with the provincial Marine Trade Associations and wrote a separate letter to the Prime Minister encouraging the government to keep boats off the counter-tariffs list. Thankfully, as of this writing, it appears the Trump administration has lifted the 10% aluminum tariffs retroactive to September 1st — and Canada will refrain from bringing in retaliatory tariffs.
Another potential threat is the government’s promised 10% luxury tax on boats over $100,000, which appeared in the Liberal 2019 election platform and was reiterated in the previous finance minister’s mandate letter. NMMA is preparing to fight on your behalf against this tax should it appear in the government’s upcoming 2021 budget.
No matter the issue, you can rest assured that NMMA will keep fighting to stay on the radar of MPs and policymakers and drive outcomes that help Canada’s recreational boating sector grow and thrive.
