Yahoo Finance British boat industry at risk of being sunk by EU-US trade war
The British boating industry has emerged as the latest casualty in the EU-US trade war triggered by Donald Trump.
When the US president slapped tariffs on EU-made steel and aluminium in May, the EU retaliated by hiking import duties on 182 US products.
That included a 25% increase in tariffs on pleasure boats ranging from yachts to canoes. Only the humble inflatable dinghy was omitted.
That has sparked protests from representatives of an industry which is worth £2.9bn to the British economy, supporting 4,500 businesses and 31,000 jobs.
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Yahoo Finance UK has found an exchange of letters in which British Marine, the industry’s lobby group, warns the European Commission their move could sink a sector already struggling with the effects of Brexit.
“While we understand the need for the EU to remain strong against the actions of the US, the EU has a responsibility to be measured and proportionate in its response,” wrote British Marine interim chief executive David Pougher.
“It is British Marine’s position that the inclusion of all recreational vessels in the EU’s counter measures is not appropriate and will directly lead to the loss of UK marine businesses and jobs.”
British importers of pleasure boats from the US have already been “significantly impacted” by the drop in the value of the pound since the EU referendum, the letter explains.
US imports we worth £100m to UK businesses in 2014, compared to £30m in 2017.
“The addition of a 25% import tariff on such a price sensitive sector of the industry is just adding further insult to injury,” Pougher added.
EU trade commissioner Cecilia Malmstrom said in her reply to British Marine that she “great regrets” the need to impose additional duties on US products.
But she said: “I regret that by its decision to unjustified additional duties on imports from the EU, the US has effectively left the EU with no other option than to defend European commercial interests by responding in a firm but measured manner.”
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Malmstrom also encouraged British Marine to “convey your concerns to US decision makers.”
The effect of the EU measures are also starting to bite on US businesses. Harley Davidson announced it is to move production of its famous motorcycles outside of the US in a bid to avoid the extra duties, prompting Trump to back a boycott of the company.
European Commission president Jean-Claude Juncker met Trump at the White House last month in a bid to end the trade dispute.
Juncker’s adviser is to travel to Washington on Monday to follow-up on the implementation of a deal designed to reduce trade tensions.
MORE: Trade war fears rise as countries hit by Trump steel tariffs retaliate
