EU Threatens Tariffs on US Boats | What Does It Mean?
EU Tariff Impact & The Global Import/Export of Recreational Boats
On March 12th, an EU commission began a study to identify a group of US-produced products to receive a tariff designation. The commission stated this product group would be wide ranging, from “boats to bourbon to motorbikes”. The commission is expected to conclude its study by March 26th.
With tariffs now targeting US boat manufacturing, let’s take a look at the global imports/exports of recreational boats to see what kind of impact this tariff may have on consumers and our domestic production.
In today’s article:
A broad view of the global import/export of recreational boats
Comparing US imports of EU-built boats to EU imports of US-built boats
What impact EU tariffs may have on US manufacturers
Global Import/Export of Recreational Boats
In 2023 (most recent data available), United States recreational boat exports totaled $1.7B, second only to Italy at $3.45B. But while the United States and Italy led the race by country, a wider regional lens presents Europe as the clear global leader in the production and export of recreational boats. Since its the EU imposing possible tariffs, and not single countries, its important we view the data from a regional lens to sense the true impact.
Top Five Exporting Regions (2023)
Europe - 64.74%
North America - 18.99%
Asia - 10.73%
Oceania - 2.77%
Africa - 2.21%
Top 10 Exporting Countries (2023)
Italy - $3,445,650,251 (21.15%)
United States - $1,703,676,739 (10.46%)
Germany - $1,545,194,381 (9.49%)
France - $1,514,090,611 (9.30%)
United Kingdom - $911,945,149 (5.60%)
Poland - $801,185,289 (4.92%)
Mexico - $685,468,316 (4.21%)
China - $503,717,069 (3.09%)
Turkey - $451,010,334 (2.77%)
Spain - $379,929,759 (2.33%)
From an importing perspective, the United States leads the world in recreational boats, surely helping North America take the top spot by region. When it comes to recreational boats, the U.S. runs a trade deficit of approximately $1.4 billion, with imports outpacing exports.
Top Five Importing Regions (2023)
North America - 42.14%
Europe - 37.90%
Asia - 9.17%
Oceania - 8.05%
Africa - 1.50%
Top 10 Importing Countries (2023)
United States - $3,103,354,000 (19.05%)
Cayman Islands - $1,832,480,000 (11.25%)
Canada - $920,278,200 (5.65%)
France - $825,620,700 (5.07%)
Malta - $759,206,500 (4.66%)
Italy - $744,292,700 (4.57%)
United Kingdom - $675,398,300 (4.15%)
Spain - $571,908,600 (3.51%)
Australia - $522,497,000 (3.21%)
Germany - $471,135,200 (2.89%)
Recreational Boat Trade Between the US & EU
The United States’ consumer’s love affair with European luxury goods is unmistakable in the global trade of recreational boats. We simply cannot help ourselves; Americans love Italian, German, French, British and Dutch machinery. And European manufacturers enjoy the fruits of our love. Breaking into the American market has long been a key European growth strategy—just as it was for guys like Enzo Ferrari and his boutique automobiles as early as 1949. In 2023, the US imported a staggering $1.86B in boats, a clear contrast to the $184M exported by the US to the EU. With such a deficit, a tariff placed on US boats by the EU has much less impact than the opposite.
The trade difference between the US & EU is shocking, considering the US is still the second largest exporter of recreational boats in the world. So where do most U.S.-built boats end up? The majority stay within North America, with Canada (39.7%) and the Bahamas (11.4%) as the top destinations.
United States Recreational Boat Exports by Country (2023)
United States Recreational Boat Imports by Producer (2023)
The Impact Of EU Tariffs on US Boats
While the EU’s potential tariff on U.S.-built boats is a concerning development for US producers, its overall impact on American businesses should be relatively minor. The EU represents only 10.8% of US boat exports, and that product class is likely the target of the tariff due to its marginal importance to the EU’s macro economy.
Most U.S. manufacturers primarily sell within North America, and while a tariff might deter some European buyers, they’re already accustomed to a hefty 18-22% VAT (Value Added Tax) on boat purchases.
For now, we wait until later this month to see if the tariff materializes—and at what cost.
Final Thoughts
The real risk of boat tariffs lies in the reverse scenario. If the U.S. were to impose a tariff on European-built boats, the market would feel an immediate and significant impact. Right now, U.S. consumers and businesses pay just 1.5% import duty on foreign-built boats—any increase would be impossible to ignore. Major European builders like Beneteau, Sunseeker, Pershing, and Azimut, whose order books rely heavily on U.S. demand, would take a serious hit. In response, U.S. buyers might shift to registering their boats under foreign flags (BVI, Cayman, Jamaica)—a strategy already common in the superyacht sector.
Are you in the boat business and nervous about the trade war between the United States and the European Union? Tell me how you’re impacted by emailing me at reed@rnmarine.com.
About the Author
Reed Nicol is a licensed yacht broker with experience in all corners of the marine industry. He’s worked as an executive and sales director in yacht manufacturing and distribution, has structured commercial charter operations, and designed and executed notable refits. Read more about Reed’s marine journey, his love of helping 1st time boaters and his entrepreneurial spirit here.
Reed Nicol [Licensed FL Yacht Broker #11926]
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