Today: Section 232 Steel and Aluminum Tariffs Take Effect; EU Retaliates with Tariffs on Boats
The Trump administration's reinstated Section 232 tariffs on steel and aluminum imports take effect today, imposing a 25% tariff on all imported steel and aluminum. In response, the European Union announced today $28 billion-worth in retaliatory tariffs, which includes recreational boats. Canada also announced retaliatory measures on $21 billion worth of U.S. goods.
Frank Hugelmeyer, President and CEO of the National Marine Manufacturers Association, released the following statement in response to the EU’s retaliatory tariffs on recreational boats:
“The European Union’s decision to reimpose tariffs on U.S. boats will cripple American manufacturers, workers, and the thousands of businesses that power our industry. It is unfortunate that the EU has moved to retaliate. It’s an unfair punishment to American workers, manufacturers and small businesses that support more than 812,000 American jobs and contributes $230 billion to the U.S. economy annually. NMMA encourages President Trump and his administration to work with EU leaders to secure a permanent resolution that removes recreational boats and engines from the tariff list. The U.S. and EU must prioritize a solution that protects American jobs, strengthens manufacturing, and ensures fair market access for American-made products.”
The Section 232 tariffs, which are enforced under Section 232 of the Trade Expansion Act, were originally introduced in 2018 under President Trump's first term to bolster domestic production by addressing concerns over global overcapacity and national security. The current reinstatement expands the scope by eliminating previous country exemptions and product exclusions, thereby applying the tariffs more broadly.
The American recreational boating industry, which relies heavily on materials like steel and aluminum for boat manufacturing, should expect increased production costs and potential disruption within supply chains.
Trading partners affected by the tariffs have previously responded with retaliatory measures, targeting U.S. exports, including those from the marine manufacturing sector. The current reinstatement may prompt similar responses, influencing international trade dynamics.
The reinstatement of steel and aluminum tariffs comes on the heels of the president’s changes on tariffs last week on goods from Canada and Mexico, including the removal of tariffs that claim and qualify for USMCA preference. NMMA encourages members to review the Customs and Border Protection’s guidance on requirements to qualify and USMCA’s Certificate of Origin requirements, as a 25% tariff remains on products that do not satisfy USMCA’s rules of origin.
NMMA members who want to learn more about the tariffs and their potential impacts are encouraged to reach out to Clay Crabtree, NMMA Senior Director of Public Policy, at [email protected].