A Canadian House of Commons International Trade Committee report found that retaliatory tariffs, including those levied on U.S.-built boats, have negatively impacted Canada’s economy. The report calls on the Canadian government to work with the United States on resolving the trade war.
Excerpts of the report, “Section 232 of the United States Trade Expansion Act: Implications of Tariffs for Canada,” are included in this morning’s NMMA Currents newsletter.
The report mentions hardships on the boating industry from aluminum and steel tariffs levied by the Trump Administration, and subsequent retaliation measures by the Canadian government that added a 10 percent tariff on all U.S.-built boats imported. The Canadian government now has 60 days to respond to the committee’s report.
NMMA Canada and the Provincial Marine Trade Associations helped produce the findings of the parliamentary report, with written submissions and advocacy efforts. The report specifically mentioned NMMA Canada’s brief, suggesting that the tariffs might lead or have already caused reduced boat sales in that country. The marine trade association also suggested the tariffs will eventually cause job losses at boat dealerships, and that some firms might relocate outside of Canada.
Seven marine trade associations testified that Canada’s manufacturers cannot provide its boat dealers with enough new product. Despite the added costs, many Canadian dealers are importing U.S. boats and paying the tariffs.
In the report, NMMA Canada recommended that the retaliatory tariffs on U.S. boats be dropped.