The U.S. yachting industry, a sector long buoyed by affluent clientele and international craftsmanship, is now facing turbulent seas. President Donald Trump’s recent imposition of sweeping tariffs has sent shockwaves through the global marine market, disrupting supply chains, inflating costs, and prompting a reevaluation of purchasing strategies among buyers and manufacturers alike.
Tariffs Take the Helm
In a bold move to bolster domestic manufacturing, the Trump administration enacted a series of tariffs in April 2025, including a universal 10% levy on all imports, with heightened rates targeting specific trade partners:
- 20% on imports from the European Union
- 32% on imports from Taiwan
- 54% on imports from China
These measures have significantly increased the cost of importing yachts and related components into the U.S., leading to widespread industry disruption.
Manufacturers and Buyers Reassess
European yacht builders, who have traditionally relied on the U.S. market, are experiencing a sharp decline in orders. For instance, Hallberg-Rassy, a prominent Swedish shipyard, has announced a reduction of one-third of its workforce due to decreased demand from the U.S.
American buyers are also feeling the pinch. The increased costs have led many to reconsider or cancel their yacht purchases. Rolf Smith, a yacht broker, reported that high-end clients are abandoning custom builds due to inflated costs and are instead opting for pre-owned vessels already in the U.S. to avoid additional duties.
Supply Chain Disruptions
The tariffs are not only affecting finished yachts but also the supply chain for components. Marine electronics, such as navigation systems and radar equipment, often sourced from Europe and Asia, are now subject to higher import costs, leading to increased prices and potential delays in yacht production.
Industry Response and Outlook
The National Marine Manufacturers Association (NMMA) is actively engaging with lawmakers to advocate for U.S. marine manufacturers, support fair and reciprocal trade policies, and ensure access to essential materials for boat production.
As the industry navigates these turbulent waters, stakeholders are closely monitoring the situation, hoping for a resolution that will stabilize the market and restore confidence among manufacturers and buyers.
Larkin Marine 