Marine manufacturers in the US are already struggling with retaliatory tariffs targeting their products from Mexico and the EU
President Trump’s threat last week that he would impose additional tariffs on all goods from Mexico in order to force the government there to help curb illegal immigration into the United States has the recreational boating industry reeling and could jeopardise adoption of the US-Mexico-Canada Agreement (USMCA).
Scheduled to take effect 10 June, Trump would impose a 5% duty on all goods from Mexico and increase the tariff by 5% each month through October, for a total of 25%, unless the Mexican government provides satisfactory assistance in the administration’s immigration efforts.
Marine manufacturers of all stripes are already struggling with retaliatory tariffs targeting their products from Mexico and the EU. Canada recently lifted its tariffs on US imports when the boating industry successfully demonstrated to the government in Ottawa that it was doing more economic harm to Canadian boat dealers than US manufacturers.
The National Marine Manufacturers Association (NMMA) continues to analyse the exact impact the new tariffs would have, but notes virtually all of the industry’s US$450m in boat, motor, parts, accessories and material imports from Mexico would be affected.
Meanwhile, the Washington Post reports congressional Republicans “have begun discussing whether they may have to vote to block President Trump’s planned new tariffs on Mexico, potentially igniting a second standoff this year over Trump’s use of executive powers to circumvent Congress, people familiar with the talks said.”