South Africa is still reeling from the diplomatic blitzkrieg of President Donald Trump’s first three weeks in office, which sees tariffs firmly back on the agenda – and not just for South Africa.
The US leader is determined to shake up global trade relations, with boatbuilding likely to feel the impact, along with many other sectors.
But local boatbuilding stakeholders remain quietly confident of continued growth, a sentiment buoyed by demand for top SA designs. “A few percentage here and there is not going to stop a high-end customer buying their dream yacht,” said one well-placed source.
Local yards are a robust breed, after all, accustomed to seismic price shocks implicit in currency and electricity tariff volatility, the source said.
However SABBEX chairperson Bruce Tedder believes local yards would, nevertheless, feel the sting of tariffs or the loss of duty-free access afforded by Agoa — the US legislation designed to help eligible developing economies in Africa. The Agoa ‘saving’ would likely be passed on to the consumer in the form of higher prices. And while this was unlikely to significantly impact boat sales, it would nevertheless reverse the original intention of the trade pact, which was to level the market playing field.
“The duty free access is important for us because it helps level the playing fields in relation to our competitors, particularly in Europe. It helps with our economies of scale and offsetting the additional costs due to distance from our major markets. We are a growing, developing nation, and every bit helps – we deserve it,” Tedder said.