SA’s boat builders devastated by tariffs: ‘Some export 100% to the US’ – SABBEX
Troubled waters with the USA could have Cape Town’s world-class boat building industry facing stormy seas.
Freight containers with US, and SA flags, trade, America. Image: 123rf.com
CapeTalk’s John Maytham speaks with Vanessa Davidson, Executive Manager at South African Boat Builders Export Council (SABBEX)
Listen below:
US President Donald Trump has imposed more than 30% tariffs on South African goods entering the United States.
He claims this is in response to South Africa’s 60% tariff on American products, a figure widely disputed by experts, who say the average is closer to 7.5%.
Regardless of the accuracy, this decision has significant consequences for our country.
With a 30% tariff, our locally manufactured boats become drastically less competitive in the US market, threatening contracts, revenue, and future investment.
The US is one of our biggest markets for leisure crafts, with more than 50% of our boats being exported there.
“Some of our boat builders are exporting 95-100% to our US market. It varies, depending on the category of boat.”
- Vanessa Davidson, Executive Manager - South African Boat Builders Export Council
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According to Davidson, the industry was exporting R4.9 billion in 2023, a picture which will change significantly.
She adds that we are likely to lose 60% of our powerboat industry as a result of the tariffs.
Scroll up to the audio player for more.