The Canadian government has removed the 10 percent retaliatory tariffs on U.S.-built recreational boats that resulted from President Trump’s 10 percent tariff on aluminum and 25 percent tariff on steel imported from that country to the United States.
The National Marine Manufacturers Association Canada and the Canadian Marine Trades Association were advised by the government of Canada that the tariffs have been lifted effective April 30.
NMMA Canada and NMMA issued a joint statement this afternoon calling it “the most positive development for our industry since this concerning issue first emerged” when Trump imposed the Section 232 tariffs.
“We have been informed that all boats imported on or after April 30, 2019, are no longer subject to retaliatory tariffs (on a forward basis),” the statement said. “At this time the government will not issue rebates or refunds for surtaxes paid on boats prior to this action.”
The order will be officially published May 15 in Part II Canada Gazette.
“The next few weeks may still have some challenges in sorting through the details,” the statement read, and urged boatbuilders to continue communicating with the industry.
The news came as a relief to Carver Yachts president Rob Parmentier, who says two of his largest dealers are in Canada.
“All the Canadian guys who had orders on hold will release them, so it’s going to be good for our whole economy,” Parmentier told Trade Only Today. “It’s going to be good for them, too.”
One Canadian dealer told Parmentier that although they were selling PrinceCraft and Campion, there wasn’t enough Canadian-built supply to meet demand.
“They love their own but don’t have the breadth that we’re able to ship,” said Parmentier, who believes the news is a sign that Trump is close to cutting a deal with allies regarding tariffs.
“We are thrilled the Canadian government heard our concerns and addressed them head on,” said the NMMA joint statement. “Together, the boating industry worked tirelessly to raise awareness of the unintended consequences that the tariffs and countermeasures were causing boating businesses. As you are aware, eliminating retaliatory tariffs on U.S. boats has been a top priority for the industry, and this new announcement is a major win for all of us.”