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Buying A New Boat In 2019? Here’s What You Need to Know About Importation Tariffs!

You’d think that the boating world would be mostly outside of politics but, sadly, that’s not always the case.  Due to ongoing trade tensions between the US and Canada, prices are going up on boats manufactured in the US and imported into Canada.  Part of this is due to direct tariffs on the imported boats, but it also relates to various tariffs and other fees attached to raw materials as well.

So, if you’re going to be buying in 2019, you may end up paying more.  Here are the basics.

Understanding How Current Tariffs Will Affect Boat Prices in 2019

First of all, of course, all this only applies to boats manufactured in the US and then imported.  If the boat you’re looking at is domestic, or manufactured elsewhere, this shouldn’t affect you.

The big factor here is the main boat-importation tariff.  Currently, there is a flat 10% fee on any boats coming across the southern border from the US, and that tariff is unavoidable.  On top of that, various other material-specific tariffs can potentially increase manufacturing prices by up to 5%.   All told, that can add up to a pretty steep boost in the prices you’ll be seeing.

Now, this doesn’t necessarily mean you can expect to pay 15% extra.  For one thing, boat dealers may choose to swallow some of those extra fees, and simply accept a lower profit margin.  This is up to individual dealers, but many may decide it’s worth the hit to keep their prices low.  Likewise, some manufacturers may also choose not to pass on their extra costs to the dealers.

Also, the exact cost will vary due to fluctuations in the exchange rate.  

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Finally, keep in mind that this will have NO impact on any boats imported prior to mid-2018, nor on any used stock.  So, if you’re looking for a bargain, hunting around for older models may be the right way to go.  After all, there’s not going to be much difference between a 2017 and a 2019 boat – aside from potentially having a price tag that’s 10% higher or more.

We’d suggest you do some shopping around, before buying a brand-new boat.

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Northstar Marine Insurance specializes in boating insurance, and that makes us your best choice for great deals -and great coverage- on your new vessels.  Click here for a quote!

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