The National Marine Manufacturers Association has issued a new Boating United alert encouraging all industry stakeholders to take action on the aluminum issue.
With so much information out there, and so much at stake, the NMMA federal government relations team breaks down how the two different aluminum tariffs will impact the marine industry and our economic ecosystem:
Recreational boating is facing a triple threat as a result of two different aluminum tariffs:
- The 10 percent worldwide tariff on aluminum recently announced by the Trump Administration will increase the price of aluminum used by marine manufacturers, 90 percent of which is domestically produced. Alone, and at 10 percent, this wouldn't be such a big deal.
- However, the 10 percent tariff is threatening to ignite a trade war, starting with the European Union. As a result, $1.7 billion in marine exports could be adversely impacted and damage the global competitiveness of the U.S. marine manufacturing industry.
- The U.S. Department of Commerce is considering an additional 60 percent tariff on aluminum sheet, a major input to 43 percent of boats the industry produces, and the majority of trailer manufacturers. Combined with the 10 percent tariff and loss of exports, U.S. marine manufacturers will be forced to increase prices substantially, potentially crippling the market for some new boats.
While a possible exemption for some manufacturers to the 10 percent tariff was recently announced, the qualifications for that exemption aren't explicitly clear. What's more, the exemption doesn't change the potential impact of the triple threat.