Trump’s Yacht Tariff Shakes Global Market
American yacht buyers and European shipbuilders are scrambling to respond to President Donald Trump’s proposed 15% tariff on imported European goods, announced Monday. The move threatens to disrupt a market where many high-end vessels are built overseas and purchased by U.S. clients.
“The U.S. is the most important export market for the recreational boating industry in Europe. The 15% tariff rate presents serious challenges for businesses in Europe,” the European Boating Industry said in a statement this week.
While the ultra-wealthy may absorb the added cost of a $10 million or $100 million yacht, brokers say the new tax changes the financial dynamics of large purchases.
“I don’t know any stupid rich people,” said Kevin Merrigan, chairman of yacht brokerage firm Northrop & Johnson. “What matters to them matters. If they hear they’re going to have to spend another 15%, it has an impact.”
Typically, yacht builders cover import duties, but attorneys say these new tariffs likely fall outside previous arrangements. That could push costs onto buyers, especially those already locked into contracts signed one or two years ago, given the long build time for custom vessels.
To sidestep the fees, many buyers are exploring foreign registration, or “flagging,” in countries like the Cayman Islands, Malta, Jamaica, or the Marshall Islands. These jurisdictions have agreements with the U.S. that allow foreign-flagged yachts to enter as visiting vessels, bypassing tariffs.
“If it’s never technically imported and it never crosses the customs border line, the tariff doesn’t apply,” said maritime attorney Michael Moore of Moore & Co.
However, registering abroad requires special permits and can cost between $5,000 and $20,000. The strategy is usually reserved for larger yachts, while smaller boats—under 45 feet—are likely to bear the full brunt of the new duties.
Industry insiders say this policy could create a divide between buyers of large luxury yachts and owners of more modest vessels. It may also drive interest in American builders like Westport, Trinity, and Burger Boat Company, especially as demand for preowned yachts has softened since the post-pandemic boom.
“That’s my hope,” Merrigan added. “That’s what we’re all hoping.”
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