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Old 02-03-2019, 10:05 PM   #1
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Tariffs affecting boat builders

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Old 02-04-2019, 01:55 AM   #2
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As in all things, there are ways to get around tariffs.
US fishing vessels have to meet Jones Act rules, made of 95% US steel. A recent new build was held up about a year because it used 15% foreign steel. Eventually money was put in the right congressman's pocket and a rider was added to a bill with a waiver for the vessel. I'm surprised it took a year. Happens all the time in commercial fishing. Probably in other industries, too.

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Old 02-04-2019, 02:01 AM   #3
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Impacted some in minor ways, some major. I know a custom SF builder had their only boat that was really in a build cycle canceled. The buyer in Europe said simply they would not pay the tariff so builder pay it or forget about the sale. Builders like Sea Ray have revised their thinking, probably as they needed to anyway. But the tariff in Europe does not impact outboards plus outboard sales are rising while stern drive falling so they moved quickly to add more outboard models.

Aluminum boat builders have been hit very hard and those hit worst are those near Canada who sold a significant percentage to Canada. They're dealing with higher costs and then a Canadian tariff.

Then there is the additional uneasiness with the tariff war. You see this especially with the Chinese builders and buyers of those boats. I know we have people here who have boats on order from China and I'd be curious to know what location the pricing is based on, is it delivered to the US or shipped from China, and who is responsible for tariff increases if they occur.

Some boats that are extremely price sensitive have been impacted by the import taxes on aluminum including inexpensive fishing boats like Tracker and Jon boats and low end pontoon boats.
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