Tariffs Threaten Boating Industry

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silverking
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Tariffs Threaten Boating Industry

Post by silverking »

U.S. Recreational Boating Industry Hamstrung by Trump Administration’s Trade Actions
Compounding Tariffs on Aluminum Threaten to Cripple American Manufacturing

WASHINGTON – Thom Dammrich, President of the National Marine Manufacturers Association (NMMA), today issued the following statement after the Trump Administration announced an anti-dumping duty of 167.16 percent on common alloy aluminum sheet imports from China:

“The Administration claims their trade policies aim to level the playing field for American workers, but instead these actions could hobble thriving industries like recreational boating. In an attempt to punish China, the Administration is wreaking havoc on the global economy. These harmful policies will have costly effects across American industries, but few are being singled out quite like the U.S. recreational boating industry.

“Yesterday’s announcement means that common alloy aluminum sheet imports from China will now face a total tariff of at least 210 percent: A 167 percent anti-dumping duty, at least a 33 percent countervailing duty, and a 10 percent Section 232 tariff on all aluminum imports. This exorbitant tariff is the product of a self-initiated U.S. Commerce Department investigation that failed to seek input from industries now facing the troubling downstream impacts.

“While nearly all marine manufacturers source their aluminum domestically, these tariffs have already distorted the global market and additional cost spikes are all but inevitable. This is terrible news for marine manufacturers, as aluminum boats represent 44 percent of new boat sales each year and account for $3 billion in retail sales.

“In addition, roughly 300 products commonly used in recreational boats are now subject to a 25 percent tariff, following a recent announcement of Section 301 tariffs on approximately $50 billion worth of Chinese products. Worse still, Canada, the European Union, and Mexico – which account for 69 percent of annual U.S. boat exports – have announced retaliatory tariffs on boats of 10, 25, and 15 percent respectively.

“The 650,000 hardworking Americans whose jobs are supported by the marine manufacturing industry depend on free and fair trade. In addition to punishing China, the Administration is punishing uniquely American manufacturing industries and has driven up costs for American manufacturers and consumers, antagonized long-standing trade partners, and nearly eliminated our key export markets. It’s time for the Administration to recognize the negative effects of its current direction and focus on negotiating substantive trade agreements that truly benefit American businesses, consumers, and workers.”

Trade Background:

95 percent of boats sold in the U.S. are made in the U.S.
Common alloy aluminum sheet is a primary material used in 44 percent of new boats built in the U.S. These boats represent 117,000 new powerboat sales each year, and account for $3 billion in retail sales.

The anti-dumping duty of 167.17 on this product will build on the previously announced countervailing duties, which are expected to total no less than an estimated 33 percent, and potentially in excess of 113 percent.

These duties are compounded by the Administration’s 10 percent tariff on all aluminum imports (Section 232). As a result, the global price of aluminum has already increased by 20-30 percent and is expected to continue to rise.

In addition, the administration recently announced the final list of Chinese products subject to a 25 percent tariff (Section 301). This list contains nearly 300 marine products, including engines and navigational equipment. These components are incorporated into the majority of recreational boats and will impact the entire industry. For some products, the additional cost to the consumer would be approximately $2,000.

Canada, Mexico, and the European Union (EU) have already defined the products that will be the targets of retaliation in response to Section 232 tariffs. All trading partners included various types of recreational boats on their lists. Each partner’s full list can be found here: Canada, Mexico, the EU.

The retaliatory tariffs on U.S. recreational boats, which are already resulting in order cancellations, are listed below.

Canada – 10 percent, takes effect on July 1, 2018
Mexico – 15 percent, already in effect
EU – 25 percent, takes effect as soon as June 20, 2018

As history has shown, each of these tariffs threaten to increase the cost of manufacturing in the U.S., which will in turn result in less domestic production, higher prices for American consumers, and fewer jobs for American workers.

###

About the National Marine Manufacturers Association (NMMA)
The National Marine Manufacturers Association (NMMA) is the leading trade organization for the North American recreational boating industry. NMMA member companies produce more than 80 percent of the boats, engines, trailers, marine accessories and gear used by millions of boaters in North America. The association serves its members and their sales and service networks by improving the business environment for recreational boating including providing domestic and international sales and marketing opportunities, reducing unnecessary government regulation, decreasing the cost of doing business, and helping grow boating participation. As the largest producer of boat and sport shows in the U.S., NMMA connects the recreational boating industry with the boating consumer year-round. Learn more at www.nmma.org.
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THOMAS CITY CURVE
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Re: Tariffs Threaten Boating Industry

Post by THOMAS CITY CURVE »

The TRUMP TRAIN is made of steel not aluminum so I don't think he's to worried about it. The top on the blue crabbers boat that I always see in the morning has a PVC structure that holds it up. I bet it will become more stylish now. :-D
DEMON
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Re: Tariffs Threaten Boating Industry

Post by DEMON »

I'm not sure how to react to the tariff situation. Americans are going to have to decide if they want low low prices or pay more & bring back American manufacturing & jobs. You can't have both. Whether we want a world economy where our standard of living has to drop down to the rest of the low-wage labor world or be our own island in the midst of everyone else. Once again, you can't have it both ways. Of course our immigration policy may decide it for us if we aren't careful.
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procraftwes
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Re: Tariffs Threaten Boating Industry

Post by procraftwes »

We set up the current market by simply being consumers.

There's no going back to an industrial economy afterwards..

Made in America these days has the same aura as made in China did in the 90's. China blows us away in both price AND quality with a lower paid workforce.. So yeah lets get into a global pissing contest with them.

Plenty of people willing to buy their products but ours? Not anytime soon.


We were doing fine as innovators sending production elsewhere and I don't get the reversal.
WetBandit
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Re: Tariffs Threaten Boating Industry

Post by WetBandit »

Well that's probably a good thing. We need to free up some of our workforce to mine coal... I hear that's coming back bigly.
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MudDucker
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Re: Tariffs Threaten Boating Industry

Post by MudDucker »

The US has been the world's whipping boy in international trade. We have experienced a massive transfer of wealth because of this. Unfair trade practices, especially by China, has crippled the steel and aluminum manufacturing sectors in the US. Our countries greatest enemy may be China and should their be a conflict, unless we take the pain now, we could be out of luck.

Having said that, Trump called for redoing the trade deals and was ignored. With the tariffs, they can't ignore the problem anymore. I'll bet dimes to donuts that the deals will now be renegotiated, but in any event, we need an integrated economy again.
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