US and EU Make Progress on Trade Disputes
The Biden administration and European Union (EU) agreed to a four month pause on tariffs related to the World Trade Organization (WTO) Aircraft disputes. The suspension will cover all tariffs both on aircraft as well as on non-aircraft products; however, it does not address the U.S. Section 232 tariffs on steel and aluminum or the 25% retaliatory tariff on American boat exports to the EU.
While NMMA applauds the progress the administration and EU have made to normalize trade relations, the association is disappointed the U.S. has yet to reach an agreement with the EU to end the retaliatory tariff on American made boats, which is set to increase to 50% on June 1, 2021.
Since the 25% retaliatory tariff went into effect in 2018, American boat exports to the EU — the industry’s second largest international market — have decreased by 42%.
NMMA continues working with members of Congress and the administration to end these harmful tariffs and is coordinating with other stakeholders to ensure the new administration is aware of the impact these tariffs continue to have on American small businesses and manufacturers.
Article Author: Boating Industry Editors