Donald Trump’s 30% import tariff on nearly all South African exports could have a major impact on buyers, builders, and the broader supply chain. Picture: iStock South Africa’s boat-building industry has been described as a story of passion, excellent designs and top-notch quality, but recently with the added moniker of uncertainty after US President Donald Trump slapped an import duty of 30% on nearly all imports from SA to the US. This makes a huge difference for an American who ordered a $1 million yacht from a SA shipyard a few months ago – they suddenly have to pay another $300 000.
Vanessa Davidson, director of BlueCape, an economic development forum that aims to grow Cape Town’s ocean economy, says that initial indications suggest the new trade tariffs will impact the industry severely. “The SA boat building industry is revered worldwide for its quality yachts and powerboats, especially catamarans. “The US does not produce catamarans, and we strongly advocate for a zero tariff.
Our calculations – from the design to the end use of a catamaran in the US – is that the boat generates double the amount of spend in the US economy compared to the cost to build the boat in SA. “The downstream American economic activity includes marina fees, maintenance, fittings, charter operations, and tourism. “It’s a symbiotic relationship.
Read Full Article on The Citizen
[paywall]
We build them; they use them. Both economies benefit,” she says. The new tariffs can upset this relationship and an industry that has been carefully build over decades.
“It is a question of who absorbs the additional 30% (plus the 1.5% loss of Agoa at the end of September 2025). Is it the customer, the builder, or other people in the supply chain?” asks Davidson. The SA boat-building industry exports around R4.3 billion worth of yachts and powerboats every year. The top three destinations for these exports are the US, the Caribbean and the EU, accounting for 30%, 27%, and 25% of total boat exports, respectively.
[/paywall]
