Since March, the US has imposed a 25% tariff on steel imports and 10% on aluminium. Rebalancing measures adopted by the European Commission on 22 June have escalated the trade war between Europe and the USA, with profound impacts for the marine industry. ICOMIA is working with EBI and NMMA to promote the de-escalation of the trade war between Europe and the USA.
The imposition of the US Administration’s worldwide steel and aluminium tariffs has meant rising costs of raw materials for the marine industry, as well as reduced global exports as a result of retaliation from trading partners. The recent rebalancing measures adopted by the European Commission to counterbalance the tariff have escalated the trade war.
The trade war has had negative impacts in both the US and Europe, as well as the global marine industry. Rising costs have led to marine dealers in the EU and Canada cancelling orders of US built boats, which also has adverse effects on boat dealers and service businesses within Europe. Boating has been singled out by all three major US allies in their retaliation; increasing political impact by imposing tariffs on successful US industries. Nobody wins in a trade war- more specifically, the recreational boating industry shoulders the negative consequences as demand for our products is highly elastic and sensitive to even small changes in the sales price of boats. Without a solution that immediately withdraws these tariffs or exempts key allies, the global marine industry – and the global economy – will suffer.
ICOMIA, along with EBI, has written to President of the European Commission, Jean-Claude Juncker, to express concern about the rebalancing measures and explain how the ongoing trade dispute has effectively frozen the export market. In it we urge the European Commission to work with the US Administration to achieve an enduring solution that benefits both sides and allows the boating industry to continue its economic growth.
A similar letter was sent from ICOMIA, EBI and NMMA to President Trump, urging the US Administration to work collaboratively with the European Commission, as well as Canadian government, to recognize the harmful effects of the current trade dispute, and to focus on achieving a reasonable and balanced resolution which does not threaten growth, jobs and innovation.
The letters can be view here (US Administration) and here (European Commission)