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European tariffs on U.S. Boats

Discussion in 'General Yachting Discussion' started by Cruz, Jun 21, 2018.

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  1. FlyingGolfer

    FlyingGolfer Member

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    This is catastrophic for almost everyone in the affected and tertiary industries.
  2. FlyingGolfer

    FlyingGolfer Member

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    Interesting observation. Question: is the Us buying market bigger than the Euro one? In other words, more US purchasing dollars spent?
  3. Pascal

    Pascal Senior Member

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    I dont know how the contracts for these builds are worded but i doubt the european buyers will be able to walk away without loosing most of what they have alreay paid.
  4. FlyingGolfer

    FlyingGolfer Member

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    Is the Euro tariff based on date of order or date of delivery? I know a guy with a Benetti in completion who will be very interested in the answer.
  5. Pascal

    Pascal Senior Member

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    Based on this page (ASSuming the numbers are accurate) the european market is about have the size of the us market

    http://www.europeanboatingindustry.eu/facts-and-figures

    Note the comment about the export ratio being 3:1 in europe favor...

    The markets are very diffeent. Because of high taxes, incl luxury taxes and high fuel costs, the average boat is much smaller over in europe and sail is much bigger. Look at how european sailboats have become so popular here... you see far more Jeanneaus, Beneteaus, lagoons, etc... than hunters or catalinas. And i doubt Hunter and Catalina export much to the EU
  6. Pascal

    Pascal Senior Member

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    With so many large boats being foregin flagged, the impact on the 70+ imports will not be significant.
  7. olderboater

    olderboater Senior Member

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    Date delivered. Anything after it went into effect. However, a Benetti is irrelevant as it's build in Europe. The tariff is on boats going to Europe from the US.
  8. olderboater

    olderboater Senior Member

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    Each contract is different and there are various circumstances, but rest assured there are buyers talking about walking away if the builder doesn't pay and builders saying they won't pay. That as well as dealers saying "no mas" and even saying they're going to refuse boats on a ship today.
  9. rpontual

    rpontual Member

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    The tariffs should be the same in either direction. Both economies are of significant size and share similar economies of scale. The trade balance should be impacted only by user preference and currency relative valuations. If Europeans are charging more than US on import duties we should match them.

    Please note that I am not endorsing Trump or anyone, just giving my point of view. This may be a great time to correct any difference because the US currency is strong.
  10. Capt J

    Capt J Senior Member

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    Well yeah. They'll just get Flagged in BVI or Road Harbor just like the old days before Florida's $18k sales tax cap.
  11. dennismc

    dennismc Senior Member

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    I understood that the US president made the statement to the affected countries "delete all tariffs" and thenUS will follow. Would be interested to hear the negatives , if any, of that implementation if it happened.
  12. bayoubud

    bayoubud Senior Member

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    Would be all positive. Tariffs are simply a tax and only benefit those that collect the tax or protected by the tax. Can't think of a single benefit to the buyer for paying tariffs.
  13. Capt J

    Capt J Senior Member

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    The only problem is, removing things like Tariffs in some countries governments takes a lot of effort and time.
  14. olderboater

    olderboater Senior Member

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    On boats, the only tariff there was prior to this was the duty charge coming into the US of 1.5%. Now other countries had VAT just as some states have sales tax, but no other tariffs I'm familiar with.

    I'm very familiar with duties and tariffs in other industries. We've been the ones having the most as we "taxed" labor intensive goods being produced in countries with cheaper labor. It was initially to discourage offshore production. Obviously it failed in doing that and became simply a revenue source.
  15. FlyingGolfer

    FlyingGolfer Member

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    If he said that, good for him.
  16. Pascal

    Pascal Senior Member

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    I don't think you can honestly compare the European VAT of 19 or 20% to our states sales tax which rarely exceed 7%. With a 300k value cap in FL.

    Apples and oranges
  17. FlyingGolfer

    FlyingGolfer Member

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    Oops. I thought Europe was just reciprocating what we had done.
  18. olderboater

    olderboater Senior Member

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    They're reciprocating our aluminum and steel and other tariffs, no boating tariffs.
  19. olderboater

    olderboater Senior Member

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    Well, they're both fruits. Both taxes that we have on items, not tariffs, not specific to imports.
  20. Pascal

    Pascal Senior Member

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    Like it or not, steel and aluminum is a national security issue. We can not let these industries wither away and be at the mercy of Europe or china. As I mentioned earlier in the thread how did we get to the point where SS shaft stock comes from Italy!

    I wish I could find a table of tariffs comparing our customs duties to others countries before this so called trade war started. I bet it would an eye opener