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Brock Elliott, the president of Kelowna boat manufacturer Campion Boats, has had to put entire parts of his business on pause.
Things in his industry became complicated last month when the United States extended tariffs on aluminum and steel to Canada and other countries it had previously exempted.
The 25 per cent tax on Canadian steel and 10 per cent tax on Canadian aluminum meant things got more expensive for American producers that use Canadian metal—expenses they passed along to manufacturers like Campion.
However, when Canada retaliated with proposed tariffs of its own, things got really messy.
“We were doing all the spreadsheets, doing everything for 2019 pricing when this came down and we just stopped,” Elliott says. “We just have to wait until we know more.”
The Canadian government plans to put its counter-tariffs into place July 1. When it does they will include a 10 per cent tax on recreational boats coming into Canada from the U.S.
Elliott says that announcement was “a big shocker” to the industry.
He points out the aluminum and steel tariffs have already meant boat prices in Canada will go up as American manufacturers increase the price of components like aluminum fuel tanks and windshield components (which they make with Canadian metal).
“We’ve already been notified how much are windshields are going up and, frankly, it was shocking,” he said.
Add those increased costs to the 10 per cent price hike on boats coming into the country from the U.S., and boat sellers are getting very concerned.
“It has the whole dealer network … pretty nervous,” Elliott says.
The National Marine Manufacturers Association of Canada wrote in a recent letter to Prime Minister Justin Trudeau it is “extremely concerned” with the tariffs and believes they will have “a significant negative impact on our industry.”
Of the more than 100,000 boats sold in Canada last year more than 65 per cent were imported from the U.S.
The NMMA says there aren’t enough domestic boat manufacturers to supply the entire Canadian market and that U.S. imports are “critical to ensure the ongoing competitiveness of the recreational boating sector in Canada.”
Although the Canadian government plans to implement the tariffs June 1, Elliott says it’s impossible to take anything for granted in the current political situation.
That means he’s spending more and more time fielding calls from concerned customers, suppliers, and retailers—the kind of uncertainty he says isn’t good for any business.
“It’s a bit of a mess,” he says.
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