Tariff Impacts on Boating Industry

[JieemQ]

Not trying to spark a political debate, I just figured I would share two articles I came across about how 25% tariffs are being levied against the boat industry and their impacts. Interesting points I took away was how the international market saved some boat builders during the 70s and 80s high interest rates as well as the luxury taxes in the 90s, and now roughly 22% of the american boat industry is facing a 25% cost increase.


http://www.boattest.com/view-news/59...percent_tariff

http://www.boattest.com/view-news/59...ed-boat-orders

Not sure how this could impact Nautique and other wake boat companies but with the tariffs on steel an aluminum I would assume the cost of trailers, towers, engines, and our favorite subject prop shafts will all be increasing. Also I don't see Pavati weathering the storm well with their all aluminum boats.

[NautiqueJeff]

And here is what Bill Yeargin has to say about all of this:

http://www.sun-sentinel.com/opinion/...620-story.html

[scottb7]

Well, I think Yeargin did a nice job on that overall...

"The boating consumer is particularly sensitive to price increases." I kind of doubt this statement due to large % of boat owners that are financing. If someone has decided to buy a boat I kind of think they will. And really doubt his statement is true of Nautique buyers.

"The administration has done a masterful job of concentrating the world’s attention on free and fair trade. We now need to use this new focus to “close the deal” and avoid a trade war that could be devastating to many U.S. businesses, jobs, and families." We are definitely seeing a focus on free trade not seen in the past. I think we know enough about Trump to know that he will look for getting some agreement (and taking his credit) just as soon as he can.

[Shockthis]

We are facing a 20-25% price increase for next year in new boats in Canada. 10% is from a new import duty, Our dollar is dropping
from the nafta agreement falling apart and then the 4-6 % yearly price increase . I am guessing a G will be way over 200k

[srock]

The thing I find most worry-some is the fact that the US imports way more than it exports. It's great that Correct Craft is selling product to the world, we need that. But here in the US...finance away but the day or reckoning is coming. Fortunately, as long as we have strong population growth we will can continue to borrow on our future.

[scottb7]

Yeah, but growth rate is down. Boomers are retiring and going to be an extra drain on social security, medicare, etc.

[distinguishedmotorsports]

Yeah, but growth rate is down. Boomers are retiring and going to be an extra drain on social security, medicare, etc.

boomers getting older/retiring/dying is going to cause some big waves in our economy. we'll see how their wealth gets redistributed.

used boat market will be getting stronger. that much is for sure.

[Wake.BC]

My thoughts being a boater in Canada is that my boat just went up 10%...


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[JieemQ]

My thoughts being a boater in Canada is that my boat just went up 10%...


Sent from my iPhone using PLT Nautique

Yeah resale value probably increased. But seems like you can only reap the rewards of that if you aren't buying a new boat after you sale your current one.