Proposed tariffs on Mexican imports would hurt recreational boating industry

Author:
Publish date:
Flags

Last week, President Trump announced a plan to impose a 5 percent tariff on all goods from Mexico as a way to push the country’s leaders to curb illegal immigration into the United States. The tariffs would begin June 10 and increase by 5 percent at the start of every month through October 1, unless the Mexican government provides “satisfactory assistance” in the administration’s efforts to slow illegal immigration.

The proposed tariffs would be problematic for marine manufacturers, many of whom rely on a North American supply chain to remain competitive. The administration’s actions could jeopardize the United States-Mexico-Canada-Agreement — which the National Marine Manufacturer’s Association has worked to ratify — potentially creating confusion for the recreational boating industry.

“While we share the administration’s frustration with our broken immigration system, applying tariffs to solve the issue is counterproductive and will have damaging consequences to our industry,” NMMA president Thom Dammrich said in an email to Trade Only Today. “Not only will this action increase the price of the $450 million in boats and engines that marine manufacturers import from Mexico each year — not to mention countless components, materials, and parts — it jeopardizes ratification of the United States-Mexico-Canada-Agreement (USMCA), which our industry has relentlessly advocated for.”

He continued, “The recreational boating industry relies on fair and free trade in North America to remain domestically and globally competitive. Using tariffs in an attempt to solve an unrelated issue will come at a great cost to our industry and the 35,000 businesses and 650,000 American jobs we support.”

NMMA says it is still analyzing the potential fallout of the tariffs, saying that virtually all the industry’s $450 million in annual imports of boats and engines from Mexico, plus all the parts and accessories, will be affected. 

Related

ABYC to Publish Largest-Ever Standards Manual

The nonprofit is offering pre-orders until June 18 of its updated standards manual, with a publication date of July 31.

Furuno, Simrad Add SiriusXM Fish Mapping Suite

The subscription-based service offers offshore anglers a suite of technology with which to locate and catch more fish.

Mercury Racing Awards Scholarships

The engine manufacturer looks to grow the next generation of skilled workers with its annual scholarship program.

Vision Marine, Hellkats to Attempt E-Boat Speed Record

A Hellkats 32-foot Widebody equipped with Vision Marine’s E-Motion powertrain will try to be the fastest electric boat in its category.

Grand Banks Operations Remain Halted

The announcement follows the Malay government order extending movement restrictions to curb the spread of Covid-19.

OneWater Marine to Acquire N.J.'s Stone Harbor Marina

The acquisition further expands OneWater’s reach in the Northeast.