How New Tariffs Could Impact the Global Boating Industry - And your boat's value.
Community
Mar 19, 2025
The boating industry is a $230 billion global powerhouse, connecting manufacturers, suppliers, and consumers across continents.
However, with new tariffs on aluminum and potential retaliatory trade measures, the industry is facing renewed uncertainty. These tariffs could impact boat builders, dealers, and buyers worldwide, driving up costs, disrupting supply chains, and reshaping international trade relationships. And as we have learned from the Covid-19 era, anything that impacts new boats, has an impact on the used boat market.
In this article, we examine the potential global consequences of these new tariffs, including their effects on U.S. boatbuilders, international markets, and the future of the industry. And we break down our thoughts on your boat, or the dream boat you are looking at selling or buying.
A Global Industry Dependent on Trade
The recreational boating industry is deeply integrated into the global economy. While 95% of boats sold in the U.S. are made domestically, international trade plays a key role in manufacturing and sales.
Aluminum is a vital material worldwide – Boats, fuel tanks, trailers, and marine accessories all rely on it, making tariff-induced price increases a global concern.
Canada, the EU, and Mexico are major players – The U.S. exports over half of its boats to Canada, while the EU and Mexico represent critical supply chain partners and markets.
International manufacturers also rely on the U.S. – Many global boat brands source parts, engines, and marine technology from American suppliers.
Because of these connections, any tariff-related price hikes or trade restrictions will ripple through the entire industry, affecting both manufacturers and consumers worldwide.
The Immediate Impact of Tariffs on the Global Market
Rising Costs for Manufacturers and Consumers
The recently announced 10% tariff on aluminum imports from Canada, Mexico, and the EU, combined with a 200% duty on Chinese aluminum, is expected to increase costs for boatbuilders worldwide.
U.S. manufacturers will see direct price increases, particularly in aluminum boat segments like pontoons and fishing boats.
European and Canadian manufacturers will also be affected, as global aluminum prices rise due to supply chain disruptions.
Consumers everywhere could face price hikes, as manufacturers either absorb the cost or pass it along through higher boat prices.
Retaliatory Tariffs Could Limit International Sales
When the U.S. previously imposed tariffs on steel and aluminum, the EU, Canada, and Mexico responded with retaliatory tariffs on U.S.-made boats. This led to:
A 22% drop in U.S. boat exports to the EU, resulting in a $70 million loss in just one year.
A 41% drop in U.S. boat exports to the UK, further straining international sales.
Cancelled orders and dealership struggles, as international buyers looked elsewhere for more competitively priced boats.
If similar retaliatory measures return, the impact will extend beyond the U.S., as manufacturers in Canada, Europe, and beyond face new trade barriers when importing American-made vessels and components.
Long-Term Global Consequences
Disruptions in International Supply Chains
Boating is a globally interconnected industry, with manufacturers sourcing materials, parts, and labor from multiple countries. A prolonged trade dispute could lead to:
Production delays due to increased costs or difficulty sourcing aluminum and components.
Manufacturers shifting supply chains, potentially moving production outside the U.S. or seeking alternative materials.
Higher costs for consumers worldwide, as tariffs drive up prices across multiple markets.
A Competitive Advantage for Non-U.S. Manufacturers
If tariffs continue to make U.S.-built boats more expensive, buyers in the EU, Canada, and other markets may turn to non-American brands. This could:
Strengthen European and Asian boatbuilders, who may gain market share as American-made boats become less competitive.
Encourage international manufacturers to relocate production, either moving operations closer to key markets or shifting away from U.S. suppliers.
Potential Job Losses and Economic Uncertainty
With the boating industry supporting 812,000 U.S. jobs and millions more globally, prolonged trade disruptions could lead to:
Layoffs in manufacturing hubs as companies adjust to rising costs.
Reduced investment in innovation and expansion, impacting the long-term growth of the industry.
Economic instability for small and family-owned businesses, which form the backbone of the global marine sector.
Industry Leaders Call for a Balanced Approach
While protecting domestic industries is a priority for many governments, industry leaders stress the need for a trade policy that supports global growth rather than restricting it.
A Call for More Nuanced Trade Policies
The National Marine Manufacturers Association (NMMA) and other advocacy groups have urged policymakers to take a measured approach to tariffs, arguing that:
Trade partnerships should be strengthened, rather than weakened, to support long-term industry growth.
Targeted tariff exemptions for marine manufacturing could help stabilize costs and keep the industry competitive.
Avoiding broad retaliatory measures would protect jobs, businesses, and economic stability in the boating sector worldwide.
How Will Tariffs Impact the Used Boat Market?
While new boats will likely see price increases due to rising material costs, the used boat market may shift in different ways. Whether you’re looking to buy or sell, timing your transaction strategically could help you maximize value and avoid unnecessary costs.
For Buyers: Is Now the Right Time to Purchase a Used Boat?
If tariffs drive up new boat prices, demand for used boats may surge, leading to:
✔ Higher resale values for well-maintained boats.
✔ More competition among buyers, making it harder to find a good deal.
✔ Potential price stabilization in the short term, before demand fully takes hold.
📌 Best Move? If you’re in the market for a used boat, consider buying sooner rather than later. As prices for new boats are expected to rise, more buyers will turn to used vessels, making it harder to find affordable options later in the year.
For Sellers: Should You Hold Onto Your Boat or Sell Now?
If you’re considering selling, timing could work in your favor:
✔ A potential price increase as buyers seek used alternatives to expensive new boats.
✔ More demand for aluminum boats, such as pontoons and fishing vessels, which may see sharper price increases.
✔ A wave of trade uncertainty, which may drive buyers to act sooner rather than later.
📌 Best Move? If you’re thinking of selling, you may want to wait a few months and see if new boat price increases push more buyers toward the used market. However, if demand spikes too quickly, a flood of sellers could enter the market and stabilize prices sooner than expected.
The Future of Boating in a Changing Trade Landscape
As tariffs reshape the global economic landscape, the boating industry must adapt to new challenges. While past trade disputes have led to higher costs, reduced exports, and shifting market dynamics, the future remains uncertain.
For buyers and sellers of used boats, these economic shifts present both risks and opportunities. Understanding these trends can help you make smarter decisions and navigate the changing market.
Manufacturers, dealers, and consumers alike will be watching closely to see how policymakers navigate these trade disputes. The hope is for a solution that supports economic growth, protects jobs, and ensures that boaters everywhere can continue to enjoy their passion without unnecessary financial burdens.
🌎 Stay informed on industry news, join groups to discuss relative topics as well and buying/selling boats, and immerse yourself in the conversation inside the SeaPeople app! 🚤
