Tariff Shock Hits South Africa’s Boat Export Industry | WION

Added: 2026-05-13

[00:00:00]Right, moving on to more stories from around the world. South Africa's luxury catamaran industry, a global leader in high-end boat building, is navigating rough waters. Despite a strong export base and global reputation, US tariffs and policy uncertainty are weighing heavily on demand. Especially from its largest market, the United States.

[00:00:22]South Africa produces around 275 luxury catamarans every year, making it the second largest producer globally after France, according to the South African Boat Builders Export Council.

[00:00:35]The industry, valued at nearly $300 million in 2024, exports about 90% of its production, with the United States as its biggest buyer.

[00:00:46]But that demand has now come under pressure.

[00:00:49]The US has imposed tariffs ranging from 10 to 30% since April 2025, even after being ruled illegal by the US Supreme Court in early 2026.

[00:01:00]Policy uncertainty has made buyers buyers hesitant.

[00:01:05]Industry players say this lack of clarity has led to a sharp drop in new orders.

[00:01:13]Trump has caused a lot of chaos in the world with the tariffs, and I think it's caused a lot of uncertainty in the market where people don't know if they're going up or going down and what the current state of affairs is.

[00:01:24]We had sold one boat into the US that was going to the US market, and halfway through he had to register that boat in a different jurisdiction to avoid the tariffs.

[00:01:36]Some businesses report order books have shrunk by as much as 40% compared to the previous year.

[00:01:42]While production has not halted, many boat builders are now looking to diversify into new markets, including Europe.

[00:01:50]Others have shifted into related sectors like automotive to weather the slowdown.

[00:01:56]Rising energy costs and the global push for sustainability are driving interest in electric and hybrid catamarans.

[00:02:03]Advances in battery technology and eco-friendly systems are positioning South African builders for future growth.

[00:02:11]We're looking for new markets like the European market and due to our electric range that obviously aids us with Europe fast accelerating into the renewable electric sector.

[00:02:25]Despite current headwinds, the industry remains confident with a strong international reputation and consistent recognition in global awards.

[00:02:34]South Africa's catamaran builders are betting on quality and innovation to ride out of the storm.

[00:02:42]We on Skelton Nomusa has sent us this report from Johannesburg. Take a look.

[00:02:48]>> [music] >> South Africa's catamaran industry, mainly based in the Western Cape province, is a growing export sector known for producing luxury sailing and power catamarans for international markets, especially the United States.

[00:03:05]However, the US tariffs are placing pressure on South African manufacturers.

[00:03:10]The tariffs are making a locally built catamarans more expensive in the American market, reducing competitiveness against the US and European boat builders. Analysts warn that prolonged tariffs could slow exports, reduce production, and threaten jobs in South Africa's marine manufacturer sector. However, despite the challenges, the industry remains globally respected for its quality, craft craftsmanship, and competitive pricing, while manufacturers are also exploring new markets beyond the US.

[00:03:43]This is Skelton Nomusa from Johannesburg, South Africa, for We on World is One.

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