As Canada's Countermeasures Take Effect, President Trump Issues New Tariffs on Products from Canada, Including Recreational Boats

| General Government Relations

Canada’s retaliatory tariffs on certain U.S. products took effect Sept. 8. The Canadian countermeasures cover $27.6 billion in imports from the U.S and are in response to the Trump Administration’s recent 50% tariff on certain imports from Canada.
 
American-made recreational boats, personal watercraft, and marine engines are not subject to Canada’s retaliatory tariffs. However, certain marine industry goods are affected, as outlined below. 
 
In a late-breaking development on Sept. 8, President Trump responded to Canada's new tariffs with additional 50% tariffs on Canadian products, including separate announcements involving recreational boats.
 
The administration cited authority under Section 338 of the Tariff Act of 1930. As with other recent tariffs on Canadian imports, the administration has said the tariffs will apply regardless of whether a product complies with the United States-Mexico-Canada Agreement. The duties are scheduled to take effect Sept. 15 and will apply in addition to duties imposed under Section 232.
 
The following recreational boats imported from Canada will be subject to the additional 50% tariffs:
  • 8903.31.00 Motorboats, other than inflatable or outboard motorboats, with a length not over 7.5 m
  • 8903.32.00 Motorboats, other than inflatable or outboard motorboats, with a length over 7.5 m but not over 24 m
  • 8903.93.20 Outboard motorboats, with a length not over 7.5 m
  • Full list here.
In response to what the administration characterizes as Canadian discrimination against U.S. motor vehicles:
  • 8903.99.21 Outboard motorboats with a length 7.5 m and over
  • Full list here.
In an interview with POLITICO last week, U.S. Trade Representative Jamieson Greer noted that “there are no negotiations happening on trade right now” in reference to the current state of U.S.-Canada trade policy.
Certain marine parts, equipment, and products are subject to the new Canadian tariffs on U.S. exports. Manufacturers can search the products and HTS codes here.
 
The following categories are identified as “specially designed for use on boats”:
  • Recreational boat, utility, snowmobile trailers (under the HTS code 8716.39.90) – 25%
  • Anchors, grapnels and parts thereof, of iron or steel – 50%
  • Stud-link, welded-link, other chain, and chain parts – 50%
  • Non-portable stoves or ranges, including those specially designed for use on boats – 25%
  •  Cooking chambers for non-portable stoves/ranges, including those specially designed for use on boats – 25%
  • Top surface panels for those stoves/ranges – 25%
  • Door assemblies for those stoves/ranges – 25%
  • Oven pilot burners, top burners, oven burners, and lighter cones for those stoves/ranges – 25%
  • Other parts for those stoves/ranges – 25%
  • Certain iron or steel articles used in the manufacture or repair of engines or engine parts for commercial fishing vessels – 50%
Additional areas that could be affected due to the broad nature of the HTS codes include aluminum and fabricated aluminum; steel and fabricated metal; marine electronics and electrical systems; marine hardware and pumps; seating and furniture; lighting; refrigeration and onboard appliances; and manufacturing tooling. 

The NMMA will continue to monitor these ongoing developments on behalf of the recreational boating industry. Please share immediate impacts with a designated member of the government relations team listed below to support ongoing trade education and advocacy efforts.

U.S. Manufacturers: For more information, contact NMMA's Clay Crabtree, interim vice president of public policy & government affairs, at [email protected].

Canadian Manufacturers: For more information, contact NMMA Canada’s senior manager of government relations, Patrick Pereira, at [email protected]