White House Announces New Tariff Adjustments: What It Means for Marine Manufacturing
Last night, President Trump signed a sweeping Executive Order finalizing modifications to the reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA), first introduced on April 2. The new order resets tariff rates for dozens of countries and significantly reshapes the trade landscape for American manufacturers, including recreational marine businesses.
Key Takeaways from the Executive Order:
- Canada and Mexico Tariffs:
- Canada: The tariff rate (“fentanyl” tariff) on Canadian goods (non-USMCA) increased from 25% to 35% effective August 1.
- Mexico: A 90-day extension was granted, keeping Mexico’s rate on non-USCMA goods at 25% through late October.
- Products that qualify under the United States–Mexico–Canada Agreement (USMCA) remain exempt from the new rate. A refresher on USMCA-compliant goods can be found here.
- Canada: The tariff rate (“fentanyl” tariff) on Canadian goods (non-USMCA) increased from 25% to 35% effective August 1.
- New Tariff Rates Effective August 7:
Beginning at 12:01 a.m. ET on August 7, 2025, a new tariff schedule—outlined in Annex I of the Executive Order—goes into effect. This includes updated rates for more than 65 specific countries and the 27-member European Union bloc. Canada is the only exception as its new tariff rate went into effect immediately. - Country-Specific Agreements:
Since April, the White House has reached bilateral tariff agreements with the European Union, United Kingdom, Japan, Indonesia, South Korea, the Philippines, and Vietnam, each securing customized rates in exchange for commitments on trade flows, U.S. investment, and reciprocal market access. Additional details of these new trade arrangements still need to be finalized and signed. - Default 10% Tariff Remains for Others:
Countries not listed in Annex I—more than 90 in total—will remain subject to the default 10% reciprocal tariff rate unless or until further deals are made. - In-Transit Goods Exemption:
Goods that were loaded and in transit via their final mode of transport before August 7 and that arrive in the U.S. prior to October 5, 2025, will not be subject to the new rates. - New Transshipment Provision:
The order includes a new 40% penalty duty on goods found by U.S. Customs and Border Protection to be transshipped—moved through third-party countries to avoid tariffs.
What This Means for the Recreational Boating Industry
With more than 95% of boats sold in the U.S. made in the U.S., the recreational boating industry is a uniquely American sector. Global supply chains—especially for parts and materials that are not made in the U.S.—remain essential to production. These new tariffs may affect input costs for U.S. marine manufacturers and distributors, particularly those sourcing components, parts, and materials from newly listed countries.
At the same time, the White House’s efforts to negotiate tailored agreements with key partners—such as the EU, UK, and Japan—offer signs of a more predictable trade environment.
NMMA’s Ongoing Advocacy and Industry Engagement
The NMMA has been deeply engaged with the White House, the Office of the U.S. Trade Representative (USTR), Department of Commerce, and congressional leaders throughout the rollout of the Administration’s trade strategy. In recent weeks, NMMA has:
- Held direct meetings with White House officials to advocate for outcomes that protect U.S. marine manufacturing competitiveness.
- Submitted several formal recommendations in response to multiple ongoing Section 232 investigations.
- Worked with industry partners and allied trade groups to elevate the need for targeted, commonsense trade policy that protects small businesses and U.S. jobs without disrupting marine supply chains.
NMMA will continue to engage policymakers to ensure U.S. marine manufacturing remains globally competitive, U.S.-made boats and engines retain access to international markets, and the industry is shielded from the negative effects of broad-based tariffs.
Next Steps and Member Guidance
NMMA continues analyzing the various tariff announcements and will provide additional guidance to members regarding specific country impacts and product classifications. In the meantime, we encourage all members to:
- Review your supply chains and country-of-origin data.
- Confirm USMCA compliance for imports from Canada and Mexico.
- Consult your customs broker for in-transit shipments ahead of the August 7 enforcement date.
To learn more about how these changes could affect your business or to share your story of how trade and tariffs are impacting business, please contact Clay Crabtree, NMMA’s Senior Director of Public Policy at [email protected].