Trade: How badly is the European boat industry affected by the customs dispute?
Lars Bolle
· 14.03.2025
The European Commission has announced retaliatory tariffs on US products in response to the US government's steel and aluminium tariffs. The affected product groups also include leisure boats. However, this measure has been criticised by the European boating industry. The European Boating Industry (EBI), as the industry association, strongly rejects the planned tariffs and warns of potential risks for European companies and the entire value chain. In a statement, the EBI calls on both the US administration and the European Commission to conduct negotiations in the coming days and weeks to resolve this urgent problem.
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Experience from previous customs conflicts
In its statement, the ECI refers to the negative experiences from previous customs conflicts. Similar retaliatory tariffs were already in force between 2018 and 2021, which would have had a significant negative impact on the industry. The association emphasises that tariffs fundamentally disrupt the free exchange of goods between companies, hinder economic growth and put jobs at risk. Small and medium-sized companies, which form the backbone of the European boatbuilding industry, are particularly affected.
The latest escalation of the trade conflict began with the US government increasing import tariffs on steel and aluminium from the EU. In response, the EU Commission is now planning a comprehensive package of countermeasures. The Commission has announced that these measures will come into force from 1 April following consultation with the member states and interest groups.
The reintroduction of EU counter tariffs on US boats could have far-reaching consequences for the European market. The last round of tariffs mainly affected boat dealers in Europe, while the US boating industry was booming in its own domestic market. However, the current economic indicators in the USA show a different picture: since the new government took office, falling stock market prices, rising unemployment figures and falling consumer confidence have been observed. This development could intensify the impact of the tariffs on the US boat industry.
Unequal impact on the industries
The introduction of retaliatory tariffs could hit the European boat industry much harder than the American one. Major US manufacturers in the leisure boat industry have already reacted to previous trade conflicts. Companies such as Brunswick, which produce for the global market, have built up large production capacities in Europe in recent years. Many of the 19 Brunswick boat brands are now manufactured on this side of the Atlantic. For example, Bayliner and Quicksilver are produced in Portugal, the new Navan brand comes from Poland, and the legendary Sea Ray sports boats are also manufactured in Europe.
For European motorboat dealers who traditionally sell brands manufactured in the USA, such as Regal Boats, Cigarette and Formula, the situation remains uncertain. It is still unclear to what extent they will be affected by the new tariffs.
When it comes to sailing yachts, previously relevant US shipyards such as Island Packet, Hunter, Catalina, Tartan Yachts or Alerion Yachts no longer play a role in Europe, are no longer represented or no longer exist. The topic only concerns a few custom yachts and boats from Melges (except the 24) as well as J-Boats with the J/9 and J/7.
European manufacturers, on the other hand, would have to expect higher costs when exporting to the USA. This uneven playing field reinforces the European industry's concerns about the planned measures.
Product groups affected:
The measures in the trade conflict from 2018 to 2021 were only suspended. Should they now come back into force unchanged, the following product groups in the boating industry would be affected:
Inflatable boats (8903 10)
Category 8903 10 includes inflatable boats, divided into two sub-categories:
8903 10 10: This group includes inflatable boats with a maximum weight of 100 kg each. These typically include
- Small inflatable boats for leisure use
- Inflatable canoes and kayaks
- Dinghies for yachts
8903 10 90: This category includes all inflatable boats weighing over 100 kg. This includes
- Larger inflatable boats with rigid bottoms (RIBs - Rigid Inflatable Boats)
- Heavy lifeboats
- Professional inflatable workboats
Sailboats (8903 91)
Sailboats are divided into two main categories:
8903 91 10: This group includes boats for maritime navigation. These include
- Ocean-going sailing yachts
- Regatta yachts for offshore racing
- Large sailing catamarans for long-distance journeys
8903 91 90: This subheading covers all other sailing boats not intended for maritime navigation:
- Daysailers and weekend dinghies
- Inland cruiser
- Smaller sailing catamarans for coastal waters
The distinction between seaworthy and non-seaworthy boats is based on technical characteristics such as hull strength, stability and equipment for long-distance voyages.
Motorboats (8903 92)
Motorboats are divided into three sub-categories:
8903 92 10: This group includes motor boats for maritime navigation, excluding outboard motor boats. This includes:
- Ocean-going motor yachts
- Large sport fishing boats for deep-sea fishing
- Luxury motor yachts with inboard engines
8903 92 91: This category includes motorboats for purposes other than maritime navigation with a maximum length of 7.5 metres. These include
- Small pleasure craft for inland waters
- Fishing boats for coastal waters
- Water ski boats
8903 92 99: Motorboats for purposes other than maritime navigation with a length of more than 7.5 metres are classified here:
- Larger cabin boats for coastal waters
- Fast offshore motorboats (not seaworthy)
- Luxurious daysailers with powerful inboard engines
The length of the boat is a decisive criterion for customs classification. When measuring, the total length including all fixed attachments such as bathing platforms or bowsprits must be taken into account.
Other pleasure craft (8903 99)
This category includes all pleasure craft that do not fall into the previous groups:
8903 99 10: Boats with a maximum weight of 100 kg each. This includes
- Lightweight canoes and kayaks
- Small rowing boats
- Surfboards and stand-up paddle boards
8903 99 91: Boats with a weight of more than 100 kg and a maximum length of 7.5 metres:
- Medium rowing boats
- Small houseboats
- Heavy canoes for expeditions
8903 99 99: Boats with a weight of more than 100 kg and a length of more than 7.5 metres:
- Large houseboats
- Heavy expedition boats
- Specialised water sports vehicles such as large catamarans for water sports events
