The boat market in 2025 in the era of tariffs
Please note that news about the tariffs is constantly changing. Please check that you are reading the most recent article on this site.
Breaking news (3:00 pm, March 6, 2025): US tariffs suspended until April 2, 2025
Latest news: Canada’s punitive tariffs on boats are suspended until early July 2025. Read the most recent article on this web site.
TARIFFS GO INTO EFFECT
The White House has put tariffs into effect, as of March 4. Now it’s time to see how Canada responds (now postponed to April 2, 2025).
The Canadian response to the tariffs will be twofold, as planned. Some tariffs are now in place at the same time as the U.S. tariffs were put in place, on March 4, 2025, with a potential value of $15 billion. Canada plans to wait 21 days before applying the 2nd wave of tariffs, which this time includes ships. The planned rate is 25% and the value of these punitive tariffs is estimated at $155 billion.
But since today, March 6, the date of the latest update from the White House, the Canadian response has been to cancel the 21 days and replace it with a new date of April 2, 2025 for punitive tariffs.
So we’re on hold for ship until March 25, 2025.
The retaliatory tariffs will be applied at the Canadian customs post if the ship passes from the U.S. to Canada, still in the context of merchandise.
N.B. At the time of writing, it remains to be seen whether Canadian customs duties or punitive tariffs will also apply to pre-owned boats.
Of course, if the boat passes from Canada to the U.S., it’s the U.S. customs post that will apply the 25% tariff in a merchandise context. If you’re just a visitor, there’s no tariff applicable. It’s like driving into the U.S. for a visit (vacation).
If the boat comes directly from Europe and arrives in Canada, everything works as before. There are no customs duties, given our free-trade agreement with Europe.
Of course, if the boat remains in U.S. territory, no tariffs apply. In all likelihood, these tariffs will apply over a period of weeks, months or longer, probably while a new free-trade agreement is being renegotiated, which will undoubtedly be expanded to the benefit of the Americans.
These new Canadian tariffs, considered punitive, will apply not only to new boats, but also to used ones. It’s as if our free trade agreement were cancelled.
Given the uncertainty caused by these tariffs, this is probably why boat dealers in Canada have preferred to reconsider their orders for new American-designed boats. So it’s going to be hard to find the following popular brands, to name but a few:
– Sea Ray
– Regal
– Cruisers Yachts
– Chaparral
– Monterey
– Bayliner
– Boston Whaler
– Cobalt
– Four Winns
– Wellcraft
– Crownline
– Mastercraft
– Malibu
– Harris
– Heyday
– Lowe
– Lund
– Ranger Tugs
– Mercury engines
European-made brands that enter Canada directly from Europe are exempt from tariffs. Here are a few examples:
– Azimut (Italy)
– Atlantis (Italy)
– Princess (England)
– Sunseeker (England)
– Ferretti (Italy)
– Pershing (Italy)
– Riva (Italy)
– Prestige (France)
– Sunreef (Poland)
– Lagoon (France)
– Sanlorenzo (Italy)
– Beneteau (France)
– Jeanneau (France)
– Fountaine-Pajot (France)
– Galeon (Poland)
– Axopar (Poland)
– Absolute (Italy)
– Saxdor (Poland)
So to avoid the tariffs, there’s always nearby (45 minutes from Montreal) Lake Champlain, which lets you sail on a lake that’s great for swimming, has multiple bays for anchoring and a multitude of marinas, and without having to suffer the tariffs, and of course, without having to pay any U.S. or Canadian taxes.
So…maybe that’s an alternative scenario.
DESPITE EVERYTHING, THE BOAT MARKET REMAINS ACTIVE
If you’re in buying or selling mode, contact us for more information. The situation is changing day by day.
The brokers at Ita Yachts Canada and its ProprioBateau division are at your disposal. Our office is located in Saint-Jean-sur-Richelieu.
DISCLAIMER
The article presented on this page is for information purposes only. This information is provided as editorial (i.e. opinion). The information presented in this article is presented in good faith and, while believed to be correct, is not guaranteed. Ita Yachts Canada does not warrant or assume any legal liability or responsibility for the accuracy, completeness or usefulness of the information and/or images displayed, as they do not suggest anything in relation to this article, indeed no association can be made with respect to the images and the article. All information in this article is subject to change without notice and is without warranty. It is the reader’s responsibility to verify the descriptions and statements contained in this article. The brokers at Ita Yachts Canada assume no responsibility for any conclusions the reader may draw. The purpose of this article is to promote boating in all its forms. It gives one point of view among many. Any reproduction of this article is prohibited.
