China-US Trade Tensions: Florida boat manufacturing affected by trade dispute

World
Europe

02:18

US boat manufacturers say they're facing higher prices for raw materials and parts. They point the finger at tariffs implemented by the Trump administration. The National Marine Manufacturers Association says tariffs are a "disaster" for America's recreational boating industry, which it values at 39 billion dollars. CGTN's Steve Mort reports.

"It's powder coated, but underneath it is aluminum, and this aluminum comes from Canada."

Building a boat at manufacturing facility in Florida.

"All the hardware and engines, they're all made of stainless steel come from China, of course, the rod holders are made in aluminum."

Chad Kovarik owns Action Craft - a company that makes recreational boats.

CHAD KOVARIK OWNER, ACTION CRAFT BOATS "The tariffs on aluminum and steel actually has an impact on us. It causes some of our prices to go up and our customer base doesn't necessarily want to pay that extra for those prices. But I don't think we have a choice."

Kovarik says since the Trump administration introduced tariffs, he's seen prices on some of the parts he buys increase by up to 12 percent.

"We have over 500 nuts and bolts and screws in each boat. You can't even buy them in the United States. They've gotta come from China. So it's important for us not to have tariffs on this kind of stuff."

The US has imposed tariffs on billions of dollars of other Chinese imports, including boat motors, engine parts and navigational equipment.

SEAN SNAITH ECONOMIST, UNIVERSITY OF CENTRAL FLORIDA "Some companies will just have to eat the higher cost and of course that will come out of the bottom line. Those companies that are using imported products that are subject to tariffs will have to reevaluate whether they're going to continue to use the same suppliers."

In response to the US measures, Canada, Mexico and the European Union have slapped retaliatory tariffs on imports of US-made boats, like these.

STEVE MORT CAPE CORAL, FLORIDA "But while the owners of this business say they are concerned about the potential impact of tariffs on their bottom line, they are willing to give President Trump the benefit of the doubt."

CHAD KOVARIK OWNER, ACTION CRAFT BOATS "I do think it's the right thing to do. I think President Trump is doing the right thing. It's just the short term that we've gotta get through."

Kovarik says he gives the Trump administration 12 months to resolve its trade disputes, and bring prices back to pre-tariff levels.

But he predicts if tariffs remain in place over the long-term, it'll become much more challenging for boat manufacturers to stay afloat. Steve Mort, CGTN, Cape Coral, Florida.