Trade Policy Update: Key Developments for Recreational Marine Manufacturers
On Monday, the Trump administration made two significant tariff announcements regarding a new 50% tariff on certain imports from Canada and a new incentive program for U.S. aluminum production. The president has said Canada discriminates against U.S. exports of dairy products, alcoholic beverages and autos.
When do the new tariffs go into effect?
The new tariffs would go into effect Aug. 19 rather than immediately, suggesting the Trump administration is using the announcement to urge Canadian counterparts to begin formal talks related to the United States-Mexico-Canada Agreement, known as USMCA in the United States and CUSMA in Canada. The agreement passed its July 1 review date. NMMA and NMMA Canada are monitoring whether Canada responds with countermeasures.
50% Tariff Impacts on Certain Marine Manufacturing Products
Some marine manufacturing products and components are included on the 50% tariff lists in Annex I and Annex II, including floating docks, electronics and certain vessels under tariff code 8906.90.00.
No Exemption for USMCA/CUSMA Goods
Unlike previous tariffs, the president indicated the new Section 338 tariffs would apply to imports regardless of whether they qualify for preferential treatment under USMCA/CUSMA.
Section 232 Tariffs
The vast majority of products subject to the Section 338 tariffs are also covered by existing Section 232 tariffs on derivative products.
What are Section 338 tariffs?
Section 338 of the Tariff Act of 1930 was signed into law during the Great Depression and authorizes the president to impose tariffs of up to 50% on imports from countries that discriminate against the United States. This is the first time Section 338 has been used to apply tariffs.
NMMA and NMMA Canada will continue working with the U.S. administration, Congress and industry partners to ensure U.S. trade policy is targeted, balanced and aligned with the needs of manufacturers in both countries.
For more information, U.S. members can contact NMMA’s Clay Crabtree, interim vice president of public policy and government affairs, at [email protected]. Canadian members can contact NMMA Canada’s Patrick Pereira, senior manager of government relations, at [email protected].