Canadian Rec Boat industry bracing for big losses.

mattie

Just read an interesting biz article.

CBC Business News today:
Countermeasure import tariffs go into effect on all recreational boat/equipment (& many other US products) July 1st.
Dealers cancelling orders. 
Example estimate of a $50K boat today will be $65K after tariff takes effect.

the recreational boat industry in Canada generates $10 billion in revenues with a GDP of $5.6 billion and employs 75,000 Canadians. There are nearly 5,000 marine-related businesses across the country, many of them small and family-owned.

andyd

The GDP of Canada is only slightly bigger than the GDP of Texas, so I don't think this is going to have more than a minor impact on the U.S. boat industry considering the U.S. economy is booming. And the CBC is like the BBC or NPR of Canada.

Andy

miggy

This will happen sooner or later, I think too people would still buy recreational vehicles/boats.

mattie

Considering we are in the 8th inning of the boom cycle (according to fin experts), these changes could be a good indicator of some questionable times ahead. 
Hard to say what will happen to used boat values. Makes sense that they go upward.

Unfortunately, trade war funding ultimately comes from the end consumer. Tariffs on raw materials & finished products from both sides. 

Recreational stuff is always good to watch. Seems to always be the 1st thing to stall out when markets shift. There sure seems to be a glut of it around.

MarkB

Oh how smart this trade war is ... especially for the Republicans.  They want to decrease income and business taxes ... and that revenue has to be replaced ... so the domestic economy needs to be fuelled up and/or they replace income taxes with import duties ... they win either way.  Deliver on promises, and increase domestic revenue. 

randy56

Your country or ours, we are tax to death, and then tax when we die, sales tax, real estate, every bill, telephone-water sewer, gas & electric, Gasoline, Federal, State. 
Grrrrrrrr.........................

miggy

Alswagg said:

This will increase the value of used boats as well  

Yeah, that will be inevitable.

MarkB

randy56 said:

Your country or ours, we are tax to death, and then tax when we die, sales tax, real estate, every bill, telephone-water sewer, gas & electric, Gasoline, Federal, State. 
Grrrrrrrr.........................

You don't want to live in Ontario, trust me. Top income tax after surtaxes is about 57% for every extra dollar earned. Then we still have sales tax, carbon tax, environmental levies, property taxes .... we have to work 3/4 of a year to pay taxes, only the last 1/4 we get to keep. People are ignorantly taking it in the backside.

MarkB

I recently bought a computer monitor ... $170 before tax.  I paid almost $230 at the till. Sales tax, environmental levies ... ended up paying over 30% in taxes/levies. It's ridiculous.

legacy1

Do we know if it’s on used boats too  coming into Canada or is it just on new boats?
whats the %of tax if it is when bring thru the border 

randy56

MarkB said

You don't want to live in Ontario, trust me. Top income tax after surtaxes is about 57% for every extra dollar earned. Then we still have sales tax, carbon tax, environmental levies, property taxes .... we have to work 3/4 of a year to pay taxes, only the last 1/4 we get to keep. People are ignorantly taking it in the backside.

I guess I do not have as much to complain about as you guy's, just thought we had it bad. You are more than welcome to move down here! Much rather have you guy's than the other rif-raf they let in. 

Michael T

We used to know how to conduct business in Canada. Ontario used to be an engine of prosperity. Several successive (liberal) governments have all but killed business and our Federal Government is being led by a former part-time drama teacher kept solvent by his daddy's trust fund. Thank God I invested in U.S. stock when I was younger. Americans have always known how to make money via hard work - two four letter words that should be a beacon of hope to future generations and they will be...... in the future U.S.A .....But sadly probably not in Ontario/Canada where the two four letter words "hard work" seem to be considered swear words at this time.

mattie

legacy1 said:

Do we know if it’s on used boats too  coming into Canada or is it just on new boats?
whats the %of tax if it is when bring thru the border 

Used boat taxed too. Sounds like 10%. Sailboats, motorboats, accessories.

LaRea

Remember how we don't talk politics here?  Tuning out now ...

miggy

MarkB said:

randy56 said:

Your country or ours, we are tax to death, and then tax when we die, sales tax, real estate, every bill, telephone-water sewer, gas & electric, Gasoline, Federal, State. 
Grrrrrrrr.........................

You don't want to live in Ontario, trust me. Top income tax after surtaxes is about 57% for every extra dollar earned. Then we still have sales tax, carbon tax, environmental levies, property taxes .... we have to work 3/4 of a year to pay taxes, only the last 1/4 we get to keep. People are ignorantly taking it in the backside.

Gee that's torture.

randy56

LaRea said:

Remember how we don't talk politics here?  Tuning out now ...

Get back on your Rinker.