As wealthy yacht buyers plan to avoid European tariffs

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American buyers and European shipbuilders are moving to evaluate the damage off us offered 15% tariffs on European products.

With many in the world recreational Donald TrumpProclamation tariffs on Monday.

This week, European boats made a statement saying: “The United States is the most important export market for the recreational industry in Europe. 15% of tariffs present serious business problems in Europe.”

Of course, most Americans can buy $ 10 million or $ 100 million on the yacht can probably afford another 15% tax. However, brokers have stated that the cost equalization for many buyers will change with tariffs.

“I don’t know any stupid wealthy people,” said Kevin Merigan, chairman of the Brokege firm Northrop & Johnson. “What is important to them. If they hear that they will have to spend another 15%, it has an impact.”

Most boat contracts require the builder to pay the fees. However, lawyers said the new tariffs are most likely not to fall into the responsibilities, and the buyers are likely to have to pay part, if not most. Brokers said many buyers who bought their yachts a year – two years ago – since a specialized assembly could take three years from start to end – negotiating with verfers.

At the same time, the brokers stated that wealthy would do what they usually do by colliding with a new tax – find the way around it. The most common strategy is likely to register a boat in another country known as “foreign design”.

The American buyer can register his yacht in one of the several countries that have agreements with the United States, the most common – Kayman Islands, Marshall Islands, Malta and Jamaica, brokers said. By registering the yacht abroad, the owner can enter the US as a visit and therefore avoid tariffs.

There are restrictions and rules, and special cruising permits are required. And for registration in another country can cost $ 5,000 to $ 20,000. But saving on a multimillion -dollar yacht is significant.

“If it will never be technically imported and it never crosses the customs border line, the tariff does not apply,” said Michael Moore, Moore & Co.

Registration in another country usually has only a financial and material -technical meaning for large yachts, while smaller boats (say, those who are less than 45 feet) most likely eventually pay the tariff. In this sense, the new tariff mode will create a new class Havt-Yachts and Heaperyachts, and the super-yachter is best avoided by 15%.

Brokers said tariffs could increase demand for yacht manufacturers such as Westport, Trinity or Burger Boat Company. And with the demand for pre -owned yachts in the lowering after overstress, many hopes for sale and prices for pre -owned yachts already registered in the United States will be strengthened.

“It’s my hope,” said Merigan. “That’s what we all hope.”