The Trump administration’s on-again, off-again tariff policy yesterday was put on hold as the president announced a 90-day pause on most tariffs levied against U.S. trading partners. Exceptions include China, against which Trump increased tariffs to 125%, and existing tariffs against Canada and Mexico.
The U.S. stock market posted historic gains after the tariff reprieve was announced, with the Dow Jones Industrial Average gaining 2,962 points, or 7.9%. The Nasdaq composite rose 12.2%, and the S&P 500 had its third-best day since 1940.
Along with the tariffs against China, Canada and Mexico — critical trading partners to the U.S boating industry — others remain. Levies on imported vehicles stand at 25%, and will include auto parts starting in early May. The baseline 10% levy against all other U.S. trading partners also remains.
Craig Fuller, CEO and founder of Freight Waves, Sonar and Firecrown Media (parent of Soundings Trade Only) yesterday posted on X that import bookings on shipping bound for the United States are “dropping off a cliff,” responding to data showing a 25% decline in such bookings since tariffs were announced. Most new boats destined for the United States from Europe arrive aboard ships.
The Wall Street Journal reported that “more container-shipping companies are cancelling sailings from Asia to the U.S. and Europe, according to the shipping-data firm eeSea. The so-called blank sailings — in which carriers remove capacity by cancelling or delaying a journey — were meant to arrive at European ports in April, May and June, said Simon Sundboell, the chief executive of eeSea, a maritime-intelligence company.”
Overall effects on the marine industry are still a moving target, though some tariffs are already causing manufacturers to rethink materials sourcing.
The vinyl that Smoker Craft imports from Costa Rica is an example. “Our vinyl manufacturer came in and said they would split the tariff cost with us,” senior vice president of marketing and corporate development Peter Barrett told contributing writer Kim Kavin this week. “They’re trying to do things to prevent us from doing an instantaneous price increase to the dealers.”
Barrett added: “Where it gets complicated is that vinyl goes up 7%, the ladder goes up 8%, the lighting goes up 10%, you add all these things up together, and it’s like, wow, this is a serious increase.”
Trade Only Today will post more reporting as the tariff situation continues to develop.
