Boat tariff battle between Europe and US looks to be averted
The boat tariff battle developing between Europe and the US looks to have been averted.
As reported here last week, tariff increases planned by the EU on American-made boats and engines would have risen from 25% to 50% from June 1st.
However, as the situation headed towards a damaging tit-for-tat showdown following the imposition of tariffs on imports from the EU, it has been agreed to find a way to end the disputes.
In the meantime, the tariff will remain at 25% and leaders of both parties will work towards solutions to preserve their respective industries.
National Marine Manufacturers Association (NMMA) President, Frank Hugelmeyer, and new US Secretary of Commerce, Gina Raimondo, were both critical to the tariff increase being forestalled.
Speaking before the latest meeting, Hugelmeyer had pointed to the 42% decrease in US exports to the EU since the introduction of the tariffs on aluminium and steel in 2018.
“That’s an astounding decline that will only worsen if Washington doesn’t act swiftly,” said Hugelmeyer, who has led the call for the ultimate removal of the EU tariffs on American-made products.
Secretary Raimondo, EU Executive Vice President, Valdis Dombrovskis, and US Trade Representative, Katherine Tai, have now announced the start of discussions to address the excess capacity of global steel and aluminium, agreeing to avoid changes that effect bilateral trade. They committed to finding solutions before the end of the year.
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