Recreational boatbuilding is a uniquely American industry that has largely not outsourced and that dominates the domestic market. Tariffs and volatility have become defining forces in our industry, and their effects challenge our customers, our market and our supply chain.
It’s important for our industry to advocate for relief while supporting the Trump administration’s goals. Marine industry companies must take a hard look at their supply chains and costs at a level of scrutiny many have never before attempted.
At the Viking Marine Group, we have taken deliberate steps to examine every layer of our supply chain. Working with our suppliers, we conducted a deep review of all components, even those labeled “Made in America.” Many domestic parts still include imported subcomponents that are subject to reciprocal tariffs, or materials listed under the Section 232 tariffs on steel and aluminum.
We now require our suppliers to provide transparency, itemizing tariffs with harmonized tariff schedule codes and costs, as opposed to nebulous price increases. This approach allows us to isolate tariff impacts, track them in our ledger and evaluate alternatives with precision. Additionally, it allows us to provide information to the policy-makers as we discuss options to mitigate exposure and ensure that American boatbuilders are not disadvantaged.
With the current focus on reshoring and revitalizing American manufacturing, we must be mindful of the economies of scale. In some cases, the market for marine components is too small to support cost-effective domestic production, even for big-ticket items like diesel engines.
For performance-critical materials, changes may require considerable in-field testing, as any switch in suppliers or materials can introduce risks for warranties or long-term reliability. The marine environment is unforgiving, and we cannot compromise quality.
But where alternatives exist, we explore them. This is a framework other companies are applying as well: review, demand transparency, weigh scale, move carefully with change, and pursue alternatives when possible.
As much as individual companies must act, this is also an industry challenge. The marine sector must be willing to go to Washington, D.C., together with our suppliers and explain the uniqueness of our industry. We cannot afford to sit back and hope others will carry the message. A unified voice of American boatbuilders and marine manufacturers must present solutions to the administration.
The market that drives our industry is especially sensitive to policy swings. Boats are products that consumers want but do not need, which leaves us more exposed to shifts in markets and sentiment than many other sectors. Domestic dominance is a strength and a vulnerability. American builders have led the sportfish and center-console markets for generations. The motoryacht segment tells the story of what happens when we lose competitiveness and market share: Once dominated by U.S. builders, it is now largely a foreign market.
Federal policy plays a direct role. The recent “One Big Beautiful Bill” extends or adopts provisions that are helpful for manufacturers, such as interest expense deductions, first-year depreciation, immediate R&D expensing and increased deductions for business equipment. These measures provide stability and drive investment, innovation and worker retention. Yet many of these provisions are continuations of earlier policies and, unfortunately, may not fully offset the new tariff exposure. We need more help.
Tariffs are generating significant revenue for the federal government: more than $100 billion through July and potentially $300 billion by year’s end. We contribute almost nothing to the collections, yet we feel an outsized impact. That is why we need policy that recognizes the disproportionate burden on industries like ours.
The path forward should include dollar-for-dollar tax credits for qualifying manufacturers to offset tariff costs; targeted reinvestment of tariff revenue to support affected industries; and structured engagement with federal leadership to create collaborative solutions.
These steps would not only provide relief, but also would establish a stronger, more competitive foundation for the future. Viking is ready to lead in this effort, but we need our industry alongside us. Without unity, our voice will be drowned out by larger industries that are already at the table.
The U.S. marine industry is a proud symbol of American craftsmanship, innovation and resilience. We have weathered cycles before, and we will again. The next steps are clear. At the company level, we must scrutinize supply chains and costs with greater precision. As an industry, we need to stand together and take our message directly to Washington. At the policy level, we should push for solutions that offset tariff burdens and that recognize the disproportionate impact on boatbuilders.
Acting now will protect us at home and strengthen competitiveness abroad. Viking welcomes collaboration. Feel free to reach out to me at [email protected].
John DePersenaire is director of government affairs and sustainability for the Viking Marine Group.
