The United States and European Union (EU) announced a deal to remove steel and aluminum tariffs, resulting in the full removal of the 25% retaliatory tariffs imposed on American-made boats and engines entering the EU. Since the tariffs were implemented in 2018, the NMMA team has dedicated significant attention and resources to resolving this issue.
The suspension of the retaliatory tariffs comes as welcome news for American boat builders, who have long been subject to these punitive tariffs.
“Since their first days in office, President Biden and Ambassador Tai have been committed to resolving the U.S., EU trade dispute that has harmed the American boat building industry, and today we applaud and thank them for delivering on this promise,” said Frank Hugelmeyer, president of the National Marine Manufacturers Association. “America’s boat builders were collateral damage of this tit-for-tat trade conflict for more than three years, resulting in a 50% reduction in exports to our industry’s second largest international market and the loss of hundreds of millions of dollars in revenue.
“This agreement is a momentous victory for the recreational boating industry – which represents the largest segment of the $788 billion outdoor recreation industry, supporting nearly 700,000 U.S. jobs and over 35,000 businesses. Thanks to the leadership of President Biden and his administration, we are no longer saddled with a structural disadvantage to international competitors.”
Since 2018, marine manufacturers have suffered from these tariffs, resulting in a 50% reduction in exports to our industry’s second largest international market and the loss of hundreds of millions of dollars in revenue.
Bill Yeargin, Correct Craft CEO and Boating Industry ELEVATE Summit Conference panelist on the state of the recreational boating industry in America had this to say about the agreement:
“The trade war of the last few years has made for a significant headwind for the boating industry. The boating industry has been fighting the trade war on two fronts; first from the increased tariffs on imported parts and secondly with the retaliatory tariffs put on boats by both Canada and the EU. At just our Correct Craft companies, the trade war has cost us millions a year. I cannot overstate the significance of this development.
“I applaud the NMMA team for working hard to get this issue both visibility and resolution. I applaud the Biden Administration for making the removal of these retaliatory tariffs an important issue in their negotiations with the E.U. The end of these tariffs will make the boating industry stronger than ever!