No 50% tax on Made In USA boats
The U.S. yachting industry is relieved to have reached an agreement to avoid an automatic increase in tariffs from 25% to 50% on Made In USA boats arriving on the European continent. The European Union and the United States issued a joint statement announcing the temporary suspension of this provision scheduled for June 1, 2021. This was a development planned by the EU from the implementation of a first tax at 25% on a series of products including boats and some marine engines, in retaliation for the imposition by the US of European steel and aluminum decided in 2018.
Resumption of negotiations
However, the page is not turned for the nautical industry. The 25% tax remains in place until further notice. Negotiations must begin quickly at the international level to resolve the conflict brought before the World Trade Organization on the trade war launched by the former Trump administration. The new president, Joe Biden, says that resolving these issues is at the top of his agenda.
The news is being welcomed on both sides of the Atlantic by the yachting industry. The National Marine Manufacturers Association (NMMA) says that U.S. recreational boat builders have seen their exports drop by 40% since 2018. The loss of revenue in terms of boat sales is estimated at $400 million, also impacting European distribution networks and dealerships of U.S.-built brands.
