Automatic tax increase on pleasure boats from the USA
With the arrival of the new President Joe Biden at the head of the United States, observers were counting on a quick resolution of the trade wars launched by the US under the Donald Trump era. But if a moratorium on taxes related to the US/EU aeronautics dispute has been reached, the issue of US taxes on steel and metals has not been resolved. The retaliatory measures decided by the European Union in 2018 included a 25% tax on pleasure boats from the United States. The decision of the European authorities provided for a second stage on June 1, 2021, from which an additional tax would raise the tariff to 50%. In the absence of an agreement by this date, the application is automatic.
US ship exports to Europe already severely weakened
The implementation of the 25% tax had already severely impacted recreational boat exports from the United States to the European Union. The EU, the second largest export market for the U.S. marine industry, has seen the number of boats arriving from the U.S. fall by 42%, according to the National Marine Manufacturers Association. The representative of the American yachting industry is concerned for its yards, but also for its distributors in Europe.
Clément Fauconnet, agency manager for Evasion Pro Yachting in Arcachon and Chris Craft and Sea Ray dealer, testifies to the situation. " The impact of the implementation of the 25% tax has been significant. American brands have become less competitive. This is quite clear and obvious if you look at the figures of what has happened in the last 2 years. The Sea-Ray models built in Poland, not affected by the tax, have done well, while the Made In USA models have been impacted. We used to sell 2 to 5 boats per year before the tax and 1 or 2 today. "
He concludes by expressing concern about the potential reaction of boaters to a further increase, in the face of a situation that he believes is more damaging to the EU than to the United States. " We have a clientele that can afford to pay a certain price, but is reluctant to pay for a tax that does not correspond to any added value. It's quite amazing because we are directly penalized. The American yards made an effort at the beginning and Sea Ray continues. But for Chris Craft, the European market is far from their core target. They sell 80% of their boats in the USA! "The dealer is hopeful that a last-minute agreement can be reached.
