If you’re in the boat-building business, you realize that every cent matters in your plight for profits. Unfortunately, tariffs can easily eat into your profits. And with costs of materials rising in today’s inflationary environment at the start of 2022, it’s not surprising that some boat builders fear that their businesses will end up sinking versus swimming in the long run.
The good news? 2021 ended on a positive note for American boat makers when the European Union’s (EU’s) retaliatory tariffs came to an end. The EU and the United States (US) agreed to eliminate the 25% retaliatory tariffs that the EU placed on all American-fabricated engines and boats entering the 27-member-state union.
Let’s take a deeper look at what the EU’s removal of these tariffs on American-created boats means for boat makers in the US and boat buyers in the EU moving forward.
The End of Retaliatory Tariffs
The EU’s decision to end retaliatory tariffs was announced back in November 2021, and the move couldn’t have been more timely. Why? Because the union’s tariffs were slated to rise from 25% to 50% on December 1.
These boating-related tariffs were an important component of a bigger agreement that U.S. President Biden and EU Commission President Ursula von der Leyden announced during Rome’s G20 Summit. The larger agreement removed American tariffs on any imported aluminum and steel from the union. These tariffs dated back to 2018, during former U.S. President Trump’s administration.
The National Marine Manufacturers Association, a key advocate for recreational boaters and boat makers, played an instrumental role in bringing visibility to the tariff issue and subsequently resolving it.
Why the End of Retaliatory Tariffs Matters to the Boating Industry
Ending the retaliatory tariffs is great news for recreational boat makers, as American boat makers comprise the biggest segment of today’s outdoor entertainment/recreation industry. This industry is valued at several hundred billion dollars annually. This industry supports hundreds of thousands of jobs and tens of thousands of businesses.
Sadly, during the past three years, the tariffs sparked a trade dispute that ultimately hurt this industry. Specifically, it led to a 50% drop in products going to one of the industry’s largest global markets. It also caused the industry to lose revenue totaling several hundred million dollars. In light of this, the recent decision is a major win for the boating industry as a whole, allowing it to thrive like never before long term.
Long-Term Implications for Buyers and Sellers Specifically
Now that the retaliatory tariffs are gone, American boat fabricators no longer have to worry about being saddled with taxes that put them at a disadvantage in the international market. Instead, as a boat maker, you can continue to export in the most cost-effective manner possible.
In addition, moving forward, you won’t feel pressure to increase your prices to absorb the tariffs. As a result, you can remain more competitive, which will increase your chances of making sales. And your buyers will save in the process. It’s a win-win situation for sellers and buyers.
Save Money with High-Quality Boat Shipping Services, Too
In addition to saving on tariffs in 2022, you can begin saving on your boat shipping costs simply by hiring a top-tier logistics service. Perhaps you’re shipping boats to the United Kingdom, North Europe, West Africa, or even the Middle East from the US. Or, maybe you’re a buyer in the EU looking to purchase a U.S. boat more affordably now that the retaliatory tariffs are a thing of the past. Either way, a reputable service provider can make the process as cost efficient and streamlined as possible for you.
As a general rule of thumb, you’ll need to begin any global boat shipping process about a month ahead of your shipping date. In this way, you’ll have plenty of time for preparing your vessel and gathering all of the necessary legal documents. This is critical given that shipping a boat internationally is inherently a complicated process both legally and logistically.
Note that if you’re in the United Kingdom, for example, the process of shipping a boat from the US’s East Coast may last from 30 to 45 days. Meanwhile, this stretch of time may be a longer 45 to 60 days if you’re getting a boat shipped to you from the US’s West Coast.
Be sure to take advantage of marine insurance as you embark on the boat shipping process. This will provide you with full coverage in the event that your vessel is damaged while in transit.
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Get in touch with us today to find out more about our matchless logistics services. With our help, your boat shipping process can truly be smooth sailing from start to finish.