EU Planned Response to Trump tariffs.

MedDreamer

MedDreamer

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My US parent company have just held a webinar giving an overview of the current situation regarding the Section 301 tariffs that Trump announced on imports of steel and aluminium and the global response.

As you may know the EU has prepared a list of Balancing measures that they intend to impose if the US withdraws the current temporary exemption for EU goods in May.

Much publicity was given to the proposed tariffs on US iconic goods - jeans, Bourbon, Harley’s etc - but the lawyer presenting today also highlighted that Motor Boats were also high on the list!

I for one was not aware of this and I am relieved that my recent Monterey purchase went through prior to any escalation of the trade war. However if you have a new American motor boat on order you may want to check the situation with your importing dealer as I understand that tariffs will be payable when the goods are imported rather than when the order was placed.

This is the situation as I understand it but I can’t find too much detail on line to confirm what I was told, others may be able to throw more light on this

I hope no one gets caught out.
 
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MedDreamer said:
I hope no one gets caught out.
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Interesting to see whether a boat sold by a US company but built in China or Taiwan attracts the US tariff. Nordhavn or Outer Reef for example which are built in China but are nominally US boats. Presumably it will depend on the certificate or origin but will those certificates say USA or China/Taiwan? And do the tariffs also apply to used boats bought in the USA and imported into the EU?
 
Does anyone know if this will affect Cummins parts? As if they’re not expensive enough:(
 
Depends on the metal content and origin I think. If the metal they are made from is of US origin and above a certain percentage of the total material of the part (not sure how that is calculated) then yes it will be subjec to the same tariff applied to the base metal.

That’s my understanding at least but I may be wrong .
 
Every cloud.....?.

It’s going to be a tough time for those dealers specialising in my type of boat though.
 
Bouba said:
Does anyone know if this will affect Cummins parts? As if they’re not expensive enough:(
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Probably not. As I understand it, many Cummins engines are manufactured in the UK for the EU market so you should be fine. We have a lot of Cummins engines in the machines my company sells and we have not heard any rumours about tariffs on either the engines or the parts (so far)
 
Deleted User said:
Probably not. As I understand it, many Cummins engines are manufactured in the UK for the EU market so you should be fine. We have a lot of Cummins engines in the machines my company sells and we have not heard any rumours about tariffs on either the engines or the parts (so far)
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Very much depends on the engine in question. The larger stuff is manufactured in the USA, the QSK19 and KTA38 for example.
 
MalcM said:
Very much depends on the engine in question. The larger stuff is manufactured in the USA, the QSK19 and KTA38 for example.
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Yes but I think the QSB and QSC engines which are commonly found in boats, are made in the UK
 
Bouba said:
Does anyone know if this will affect Cummins parts? As if they’re not expensive enough:(
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Have asked the question.........Both Cummins and aftermarket answer is NO, NOTHING Zilch.

Out of interest have you ever compared with Yanmar parts or a bit less painful Volvo Penta?

Another factor to bear in mind if you have a 40 year old Cummins or a Volvo Penta you can still obtain parts..Mermaid, Sabre and even many Perkins models NLA..
 
AdeOlly said:
More details here from boattest.com with details of boat types impacted and some stats on volumes and values.

http://www.boattest.com/view-news/5950_the_eu_hits_american_boats_with_25_percent_tariff

Their take is that the 25% additional tariff makes nearly all US made boats unsaleable in the EU.
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I have to say that I feel really sorry for the US boat manufacturers who have inadvertently found themselves to be a pawn in somebody else's political game. A classic example of how imposing tariffs does nobody any good but we already knew that
 
MalcM said:
Very much depends on the engine in question. The larger stuff is manufactured in the USA, the QSK19 and KTA38 for example.
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Excuse me... KTA 38 and all models through to QSK 78 manufactured in Daventy Northampton (England) and U.S built QSK 19 is upfitted in Daventy, QSK 95 only high hp motor built the U.S
 
Deleted User said:
I have to say that I feel really sorry for the US boat manufacturers who have inadvertently found themselves to be a pawn in somebody else's political game. A classic example of how imposing tariffs does nobody any good but we already knew that
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I'm worried for the UK boat builders if the US retaliates and puts a tariff on EU boat builders.

MedDreamer said:
And also the UK Dealers whose main ranges are smaller US motorboats.
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And people like Bates who deal with larger US stuff, e.g. Chris Craft.
 
I would think the average Chris Craft buyer isn’t buying on price Pete, likewise Boston Whaler and other more specialist stuff.

I think the Bayliner, Four Winn’s, Sea Ray dealers will suffer more.
 
we bought a couple of american boats, (2007 and 2008), both had been imported as stock boats by the dealer as the rate was beneficial, circa 2 bucks to the pound iirc. if you look at american boats, crownlines, monterey's, bayliners searay, there are loads and loads of boats from that vintage in the eu and indeed i know a couple of folk who imported boats from dealers in fl, as a brit you felt wealthy shopping in the states then....

we saw a few, (lovely looking), monterey sports boats at the vilamoura boat show a few weeks ago, the ticket price was bonkers and i suspect its been very tough to shift american boats in the eu for some time.

so i guess a strong dollar is far more the problem for dealers of these kinds of boats, stock boats are few and far between as dealers don't want to get stung and who would buy an american boat, @1.3$ to the pound? yes the tariffs won't help anyone but the x rate is the prevailing condition in this instance, imho.

re your point petem, I guess that the dollar strength will have been delighting group beneteau and others for the last 3 years so yes, any tariffs would hurt them badly i recon.
 
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