How will the new trade agreement between the EU and the US affect the yachting industry? 

In April, we wrote about the development of the “trade war” between the EU and the US and its impact on the yachting industry. Since then, the situation has changed, and from a dynamic escalation of tensions, we are moving toward an optimistic plan for an agreement. A few days ago, the European Commission published a draft of changes that are expected to be introduced soon. These are the assumptions that EU and US leaders intend to implement. 

New tariff rate 

According to previous statements by Donald Trump, tariffs on goods from the EU, such as pharmaceuticals, cars, and electronics, reached 25%, excluding the rates functioning under WTO rules (which, in practice, sometimes set rates at 27.5%). According to the agreement, tariffs on most goods will be reduced to 15%. This rate is to be complete (i.e., it will include the WTO rate) and will apply to most goods imported to the US from the EU. For now, there is no information on whether the rate will also apply to recreational vessels, such as yachts and their parts. 

Scope of the agreement 

The agreement does not clarify all issues. It is not known whether the regulations will cover all areas of the industry, or if some will be excluded. In this regard, it is unclear what impact this will have on the yacht industry and the maritime sector. As a result of the talks, the EU has withdrawn from imposing 30% retaliatory tariffs on recreational boats from the US, which may impact the competitiveness of boat suppliers and potentially increase exports. 

Tariffs on steel and aluminum 

The joint statement did not address tariffs on steel and aluminum imports. The content of these metals in products is now subject to a 50% tariff, and the US Department of Commerce has added further goods made from these raw materials to the tariff list. This may affect the prices of parts imported from the US, including products crucial to the yacht industry. Already included in the list are items such as outboard motors, as well as hydraulic or electrical accessories. In this case, we can only hope that as a result of further talks, goods imported from the EU will be excluded from such tariffs. 

The near future 

Although the provisions in the agreement are not yet in effect, they offer hope for an improvement in relations between the EU and the US, and thus for a better situation for entrepreneurs (including those in the yacht industry) on both sides of the Atlantic Ocean. If the next talks proceed in a similar tone, we can expect favorable solutions in terms of trade and tariff rates.