BOAT PRICES & TARIFFS: A SUMMARY OF WHAT TO EXPECT — AS IT RELATES TO GRADY-WHITE AND PARKER OFFSHORE

Many of our customers have expressed curiosity on the potential impact of new import tariffs on the prices of new Grady-White and Parker Offshore boats. Given this curiosity, I felt compelled to summarize, to our larger audience, our perspective is as it relates to how these tariffs may impact the cost of Grady-White and Parker Offshore boats over time:

To start, it's necessary to state that all Grady-White Boats and Parker Offshore boats are built by hand in American factories — made by craftsman just south of us in coastal North Carolina. It should be known that the primary cost of building these boats is related to local labor and raw materials, the latter of which is mostly sourced in the United States, from American companies that employ even more American workers.

That said, all Grady-White and Parker Offshore boats are powered by Yamaha Outboard motors, which are considered best-in-class for their safety, reliability, and overall value — nothing else compares. Certainly, Yamaha motors are built in Japan and are now subject to a new 24% reciprocal tariff, but it remains to be seen how much of this cost increase, if any, will be passed on to the new boat buyer. Throughout the distribution channel — from the country of origin to the manufacturer, to the wholesaler, to the retailer to the consumer — each party will likely absorb some of this cost along the way to avoid the entire sum being passed on to the new boat buyer. This same principle applies to other industries who are also dealing with reciprocal country tariffs.

Therefore, as it applies to boat sales this year, I have a few insights/suggestions if you are considering purchasing a boat in 2025:

• New Boat prices may increase mid-year on boats currently in production now, due to new tariffs added to the Yamaha motors — but not the full amount of the 24% tariff on Japanese imports, as indicated above. That said, given the relative cost of the motor vs. the cost to produce the entire boat, the cost increase will likely be negligible on the boat and motor package as a whole.

• Given the perception of the increase in new boat prices, pre-owned boat demand will likely increase, which will increase their prices in the marketplace relative to historical pre-owned boat prices. We see this starting to happen now.

• New or Pre-owned boat buyers looking to purchase a boat this year, should consider purchasing now or soon vs waiting for the following reasons: spring discounts on in-stock boats are at an all-time high, interest rates are lower than they’ve been in over a year, and you'll be able to beat any potential tariff-related price increases.

• Purchasing a boat before the potential price increases take effect, will only increase the value of your investment — creating even more financial advantage and lowering your overall total cost of ownership. Simply put, it's a better investment. 

Despite the tariffs, the fundamentals of the economy are sound, as evidenced by yesterday's March 2025 Jobs Report, which reported a significant increase in new jobs added — exceeding all economists' expectations. Certainly, this was overshadowed by the panic selling that has taken over Wall Street over the past few days. Overall, we expect that the market's severe reaction to these new tariffs to ease in the coming weeks. Despite the recent headwinds, we are optimistic on the year ahead and still expect strong demand — so if you're looking to buy a boat this season you gain advantage by buying now.

Thank you for taking the time to understand more on our peespective. Please let us know how we can help you to make your boating experience more enjoyable.

Keith A. Rhodes, Owner & CEO, Tri-State Marine — Bluewater Capital, Inc.