U.S. + E.U. Agree to Halt Tariff Increase On American Boats Heading To Europe

E.U. Tariffs On American Boats Will Not Increase. A Small Victory For The Marine Industry.

The United States and European Union announced an agreement on May 17 to suspend a tariff increase on American boats and engines heading to Europe. The agreement avoids doubling the retaliatory tariffs from 25% to 50%, which were set to go into effect on June 1, 2021. 

The European Commission said it would suspend the doubling of retaliatory tariffs on Harley-Davidson motorcycles, American whiskey, and motorboats for up to six months. While this is encouraging news, the current 25% countermeasure on American boats will remain in effect until a comprehensive agreement is reached. The U.S. will maintain its tariffs of 25% on steel and 10% on aluminum, despite the announcement.

The 25% retaliatory tariffs went into effect in 2018 after the introduction of U.S. tariffs on aluminum and steel. Since then, the marine industry’s exports to Europe have declined more than 40%. These tariffs hurt American marine manufacturers, who rely on this multibillion-dollar export market to support nearly 700,000 jobs and 35,000 businesses across the nation.

Ahead of Monday’s announcement, the National Marine Manufacturers Association (NMMA) conducted a robust government affairs campaign, including meetings with cabinet officials, members of Congress and staff, as well as letters sent to the European Commission urging for a reversal of the retaliatory tariffs.

“The existing 25% tariffs on American boats heading to Europe have slashed our industry’s exports to the trading bloc – our second largest international market – in half and doubling them would have essentially eliminated our remaining European exports,” said Frank Hugelmeyer, president of the National Marine Manufacturers Association.

“However, now is not the time to stand idly by. American boat builders remain at a competitive disadvantage to our international competitors. We are encouraged by both parties’ commitment to resolve all underlying trading issues by year’s end – most importantly, the 25% retaliatory tariffs on American-made boats – and look forward to working with negotiators to achieve this objective,” continued Hugelmeyer in an announcement. 

As this six-month halt to E.U. tariffs on American boats is a small victory, NMMA knows that there’s still work to be done in order to fully level the playing field for American boat builders. U.S. and E.U. negotiators seek to reach a comprehensive agreement that removes retaliatory tariffs on American boats by the end of 2021.

In the weeks and months ahead, the NMMA team will continue engaging with negotiators on both sides of the Atlantic to ensure the marine industry’s concerns are addressed in a final agreement. If you’d like to get involved, contact Clay Crabtree, NMMA’s vice president of North American public affairs.

Denison yacht brokers are knowledgeable on the import and export process of motorboats and superyachts and can guide you through the process. (Read our highlight on Juno Prudhomm who can facilitate your boat purchase in Panama). Contact a Denison yacht broker to schedule a showing of one of our featured yachts or new boats for sale.

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