Trump’s trade war costs US boat makers $US400m
Industry pleads for an end to a punitive 25 per cent tariff on US boat exportsDonald Trump’s trade war with Europe has cost US boat makers more than $US400 million ($A565 million) in lost exports, the industry has warned.
In 2018, Europe introduced a 25 per cent tariff on boats imported from the US in response to Trump’s announcement that he would impose a 10 per cent tariff on imported aluminium and steel to protect US jobs.
The effect has seen US boat exports to Europe slump 30 per cent since the retaliatory tax was imposed as the number of US-built boats sent overseas falls, and prices increase.
A letter signed by members of the International Council of Marine Industry Association, the European Boating Industry and the US National Marine Manufacturers Association and sent to both the US and EU governments, calls on them to remove the “unnecessary barriers for small- and medium-sized companies”.
“Like many industries, the global COVID-19 pandemic has impacted the recreational boating sector,” the letter says.
“While many families are turning to boating for safe socially-distant activity, workforce and global supply disruptions continue to impact production.
“The burden of an additional tariff and lost European sales (for importers and domestic EU businesses) make it difficult for our industry to fully recover.”
US exports 'critical'
It argues that US boat exports are "critical" for both economies to support local jobs, manufacturing and businesses via a tariff cut.
“ It is now more critical than ever, to support local jobs, manufacturing and SMEs, through tariff reduction,” it said.
“To ensure free and fair trade, we strongly urge the US and EU to simply build upon recent progress: recognise the harmful effects of the current trade dispute on our sector, and focus on achieving a swift and reasonable resolution to end the EU’s tariffs on boats and US tariffs on aluminium and steel.
“By supporting the boating industry, both governments can help further invest in local jobs, manufacturing and important recreation for American and European citizens.”
The US Government last week announced it would back down on punitive aluminium tariffs with its closest trading partner, Canada, as part of a tentative first step in a process aimed at restoring relationships in North America.
However, the US Trade department warned it would reimpose the 10 per cent tariff if Canadian imports exceeded capped monthly volumes.
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