CRITICAL IDEA TO SAVE CANADA’S BOAT BUSINESS
Mar 11, 2025
I just received a great idea to help save the Canadian boat business and boat dealers all across Canada from a disastrous summer in 2025. But we need to act quickly.
With the United States launching a trade war against Canada and imposing 25% tariffs across the board, the Canadian government and the Provincial governments are working urgently to respond to what is today, our new reality. The Prime Minister, other party leaders and the Premieres are all talking about the importance of “Canada First”, “Made in Canada”, trade between provinces, and Canadian companies selling to other Canadians coast to coast.
There is an overwhelming sense of urgency to find ways to make changes quickly that help Canadian businesses survive, to keep their people employed, and to keep their Canadian supply chains alive.
Now is the time to make immediate changes to the Luxury Tax on Vessels. The Canadian government can show they want to keep the jobs in Canada, and they can create examples of how Canadian businesses can survive with the recently-imposed tariffs.
To-date, the only focus of our boating community has been on eliminating the luxury tax. However, reality suggests this will take time, and some businesses will be gone and their employees laid off by the time this change is made.
Two new suggestions have emerged:
- Change the price threshold for the luxury tax from $250K to $10M. This suggestion was made by a Niagara MP as the fastest way to effect a change. If this can be done in May/June 2025, it would have huge benefit to all Canadian builders and dealers alike.
- Have the Finance Minister postpone the luxury tax for a defined period of time (e.g. for all orders received until December 31st 2026) until legislation can be put in place permanently changing the price threshold as above, or removing the tax altogether.
There are probably other alternatives that are out there and that can be contributed by the Canadian Boating magazine and Boating Industry Canada readers.
From coast to coast, large and small boating businesses need a solution now. The new environment of uncertainty that we find ourselves in today, whether or not the tariffs become reality, demands new solutions immediately, not in a year or so.
NEXT STEPS
We invite your reply as Boating Industry Canada News Week Digest readers. We will read your replies and will gather and share your ideas in the next issue. Our thanks and appreciation in advance!
Andy Adams – Editor
