Last week, President Trump announced he would impose a 5 percent tariff on all goods from Mexico as a way to compel the country’s leaders to help curb illegal immigration into the U.S. The tariffs would begin on June 10 and steadily increase in the coming months – 10 percent on July 1, 15 percent on August 1, 20 percent on September 1, and 25 percent on October 1 – unless the Mexican government provides satisfactory assistance in the administration’s immigration efforts.
The proposed tariffs would be problematic for marine manufacturers, many of which rely on a North American supply chain to remain domestically and globally competitive. To that effect, the administration’s action could jeopardize the United States-Mexico-Canada-Agreement (USMCA) – which NMMA and its members have worked hard to ratify – creating more chaos and confusion for the industry.
While NMMA is still analyzing the potential fallout, virtually all the industry’s $450 million in annual imports of boats and engines from Mexico – plus marine accessories, materials, and parts – will be affected. Moving forward, NMMA will continue to monitor the situation, encourage the administration to seek alternative strategies, and work with Congress to pass USMCA.
For questions or additional information, please contact NMMA senior vice president of government and legal affairs, Nicole Vasilaros at [email protected].