US and EU - Is the Trade Confrontation Over?

The US and the EU have reached a political agreement to normalize tariffs. They were introduced since the beginning of the trade confrontation launched by the Trump administration. This will make life easier for the maritime industry, especially in the United States.

Aluminum and steel as a stumbling block

In a joint communique published at the G20, the US and EU announced their end to the trade confrontation. The situation has developed this way due to the import of steel and aluminum. 

As a result, special taxes on these metals imported into the United States are being lifted. The European Union, in turn, is suspending the response. These included the 25% tax on American pleasure boats and engines imported into the EU.

Facilitating the US Shipping Industry

This announcement was marked by the global maritime industry. Many in the industry have recently reiterated their concerns about this issue. Frank Hugelmeyer, president of the National Marine Machinery Manufacturers Association (NMMA), the leading US industry union, highlighted the damage done to shipyards and boat dealers during this period. 

“US shipbuilders have been suffering collateral damage in this trade dispute for three years. This led to a reduction in exports to our second largest international market at the 50%. Then there was a loss of hundreds of millions of dollars in income. " 

US shipyards, especially shipbuilding aluminum consumers, are already suffering from rising material costs. Therefore, they are supportive of the abolition of taxes.

The White House is negotiating between shippers, logistics firms and trade unions. The White House is negotiating 24/7 operation of container ports in California in an effort to clear congestion.

What does this mean for ordinary sailors?

Reducing prices for a huge number of products containing aluminum and steel. Prices, of course, will not collapse (inflation is not going anywhere), but they will definitely decrease by 5-10%. Not a critical indicator, but acceptable. 

On the other hand, the question arises as to how long this agreement will last? Where is the guarantee that prices will not skyrocket again? Alas, such questions remain unanswered. 

At this stage, we can confidently say that yachtsmen still have several years before the next food and economic crisis.

09.11.2021