Wide-ranging tariffs took effect this morning on goods imported from Mexico, Canada and China. An initial 10% tariff on all imports from China took effect Feb. 4, and an additional 10% tariff on Chinese goods was levied this morning. A 25% tariff on imports from Canada and Mexico begins today.

The Trump administration said the tariffs on Canada and Mexico are a response to illegal immigration and fentanyl smuggling into the United States from the two countries. Additionally, the administration claims the tariffs will help reshore American manufacturing.

Among the tariffs that could have significant impact on the boating industry are those on aluminum, copper wire and steel. Canada, China and Mexico are the United States’ three largest trading partners.

According to Reuters, Canada exported 3.2 million metric tons of aluminum to the United States in 2024, far outweighing imports of the important marine-manufacturing metal from nine other countries. The U.S. Department of Commerce reports that China is the third largest importer of aluminum to the United States, behind the United Arab Emirates.

Additionally, about 25% of all steel used in the United States is imported from Mexico and Canada, with Brazil being the second largest importer, according to the American Iron and Steel Institute.

According to The Observatory of Economic Complexity, the United States imports most of its copper wire from Canada, Mexico and the United Arab Emirates.

Some marine manufacturers responded to similar tariffs on aluminum and other metals imported from Canada, Mexico and China during the first Trump administration by sourcing the metals from within the United States. Others are reliant on imported materials.

The New York Times today reported that Canada will respond with its own tariffs of 25% on $155 billion worth of American goods. According to the The Washington Post, China is retaliating with a 15% tax on U.S. goods, including chicken, wheat and corn. Other products, such as soybeans, beef, pork and seafood, will be subject to a 10% levy. As of this morning, Mexico has not placed any retaliatory tariffs on U.S. products.

The April issue of Soundings Trade Only will include a report on tariffs and their effects on the boating industry.