Why have the prices of NEW boats increased so much in recent years?
The short answer:
– Tariffs (if the boat comes from a country other than the United States)
– Taxes, including the 10% Canadian luxury tax
– And, above all, the value of currencies
It’s mainly the third point that greatly influences the price of boats or yachts.
The majority of builders are now located outside the United States.
Of course, boats under 40 feet are mostly American, and those larger than 40 feet are mainly European, Australian, Chinese, and also Taiwanese.
There are also transportation costs, which have increased significantly to cross oceans (on top of a container ship).
Well, the vast majority of manufacturers quote prices in USD, but this currency has been declining since President Trump took office.
Today, as of August 5, 2025, here are some figures (based on the exchange rate in (current rate):
$1 USD = $1.38 CAD
= €0.87 euro (Azimut, Ferretti, Riva, Pershing, Beneteau, Jeanneau, Absolute, Prestige, Galeon, Lagoon, Sunreef, Saxdor, Axopar)
= £0.75 British pound (Sunseeker, Princess, Fairline, Sealine)
= $1.55 Australian (Riviera, Maritimo)
To be clearer, if, for example, you purchase a boat from the Beneteau Group (Beneteau, Jeanneau, Prestige, Lagoon) or an Azimut, a Ferretti, or an Absolute:
If the boat’s factory price is €1 million, the dealer price (for example purposes only), then it is worth:
– In Canadian currency: $1,590,000 CAD
– To this must be added the shipping costs to North America, at least for a 50-foot boat for $80,000 CAD.
– Fortunately, we have a free trade agreement with Europe, so there are no customs duties.
– But we have a 10% luxury tax, which puts the dealer’s price at $1,837,000 CAD.
– To this price, we must add the profit from the sale, say 15%, and we get to $2,112,500 CAD.
– And finally, we must add the GST and QST, so the customer will have to pay approximately more than $2.4 million CAD for this 50-foot boat.
A few years ago, the selling price would have been more like $1.4 million CAD.
If we look at a boat that is not part of one of our free trade agreements, such as a boat built in China, Taiwan, Turkey, or Brazil.
(Aquila, Horizon, Sirena, Ocean Alexander, Schaefer):
Let’s still take the example of a 50-foot boat sold for $1 million USD by the shipyard:
– In Canadian currency: $1,378,479 CAD
– To this must be added the shipping costs to North America, let’s say a minimum of $80,000 CAD for a 50-foot boat.
– This time, there is a 9.5% customs duty to pay. This brings the amount to $1,597,034 CAD.
– But we have a 10% luxury tax, which brings the price of the boat to $1,756,737 CAD for the dealer.
– To this price must be added the profit from the sale, let’s say 15%, which brings it to $2,020,248 CAD.
– And finally, we must add the GST and QST, so the customer will have to pay approximately more than $2,323,184 million CAD for this 50-foot boat.
It’s easy to imagine that a boat from the United Kingdom will be even more expensive due to the currency being worth more than the Euro.
But let’s return to the price of new boats built in the United States. Here, it’s the tariffs that have driven up prices.
For example, a Cruiser Yacht or a Tiara with Volvo Diesel engines that are built in Sweden are now 15% more expensive due to tariffs.
Many boat components are manufactured in China, which is subject to a 55% tariff. Consider, for example, deck hardware.
This is one explanation for the much higher prices than those in effect five years ago.
It must also be said that the wages of factory workers have increased quite significantly in recent years.
For builders listed on the stock exchange, in addition to declining sales, they must to show total sales that will stimulate investors. So, if sales decline, it’s difficult to also decline sales profits.
In short, we expect buyers to likely look more closely at offers on the used market than on the new market. But manufacturers will certainly innovate more with new models to stimulate new purchases with their new concepts.
Buying a boat remains a gift we give ourselves, so purchases are made, or attempt to be made, based on a balance between the Cartesian aspect of the thing, but also on impulse. Therefore, rational purchases are not always the number one acquisition criteria.
The brokers at Ita Yachts Canada and its ProprioBateau division are here to advise and assist you with all your acquisition projects.
Information for boaters:
Some facts about the Canadian Luxury Tax:
– The Canadian Luxury Tax applies to boats valued over $250,000 CAD. It applies to all new boats.
– For pre-owned boats, if the boat was already registered by a boater before September 1, 2022, it is exempt, regardless of its origin or location.
Customs duties:
– Boats imported or exported under the CUSMA, the Mexico-United States-Canada free trade agreement, are not subject to customs tariffs (i.e., boats built in one of these three countries).
– We have a free trade agreement with Europe, but it must come directly from Europe. If you acquire a European boat in the United States, this cancels the customs exemption, so it will be subject to a 9.5% customs tariff upon entry into Canada.
What is sometimes meant by saying that a boat is inbound:
A boat acquired by a Canadian that will always sail outside Canada will not be subject to US taxation under a Canadian flag (if it sails there), and since it does not return to Canadian territory, it will not be subject to Canadian taxation.
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