US tariffs become a headwind for SA yacht builders

South Africa’s boat-building industry has been described as a story of passion, excellent designs and top-notch quality, but recently with the added moniker of uncertainty after US President Donald Trump slapped an import duty of 30% on nearly all imports from SA to the US.

This makes a huge difference for an American who ordered a $1 million yacht from a SA shipyard a few months ago – they suddenly have to pay another $300 000.

Read: Investments worth more than R26bn in SA’s ocean economy unveiled

Vanessa Davidson, director of BlueCape, an economic development forum that aims to grow Cape Town’s ocean economy, says that initial indications suggest the new trade tariffs will impact the industry severely.

“The SA boat building industry is revered worldwide for its quality yachts and powerboats, especially catamarans.

“The US does not produce catamarans, and we strongly advocate for a zero tariff. Our calculations – from the design to the end use of a catamaran in the US – is that the boat generates double the amount of spend in the US economy compared to the cost to build the boat in SA.

“The downstream American economic activity includes marina fees, maintenance, fittings, charter operations, and tourism.

“It’s a symbiotic relationship. We build them; they use them. Both economies benefit,” she says.

The new tariffs can upset this relationship and an industry that has been carefully build over decades. “It is a question of who absorbs the additional 30% (plus the 1.5% loss of Agoa at the end of September 2025). Is it the customer, the builder, or other people in the supply chain?” asks Davidson.

The SA boat-building industry exports around R4.3 billion worth of yachts and powerboats every year.

The top three destinations for these exports are the US, the Caribbean and the EU, accounting for 30%, 27%, and 25% of total boat exports, respectively.

The US market has grown in prominence since 2019, when it overtook the Caribbean as the leading destination for SA’s boat exports.

Davidson says that buyers can sidestep the punitive 30% tariff by registering the vessel in another country, which might benefit the larger yachts and superyachts destined to be moored and used in Europe.

“Smaller powerboats will be more affected by the tariffs, as US buyers generally would like their boat at the end of their dock or moored in a local marina. Our one superyacht builder, Southern Wind, only exports to Europe, so they are unaffected,” says Davidson.

Read:
How Trump’s tariffs are rattling through the SA economy
Trade negotiations with the US now ‘based on text’ – Ramaphosa

Industry association SABBEX/Boating SA has been lobbying with government and leadership at all levels to ensure the industry is heard to aid government to broker a deal with the US that is favourable to the boat building industry.

“Ultimately the tariff negotiations are a government-to-government negotiation,” says Davidson.

Awards

SA yachts have carved out a global niche for high-quality boats, harking back to earlier days when vessels built in Cape Town were sailed across the Atlantic Ocean for delivery. The new owner got peace of mind that he purchased a seaworthy boat.

Davidson says that the industry’s reputation extended far beyond a “strong build”.

“We win international awards regularly,” she says.

“It’s about design, performance, and finishes, and the fact that our boats are being shipped all over the world or sailed on their own bottom. South African craftsmanship stands up in any marina, anywhere.”

Shipwrights Robertson and Caine in Cape Town is the largest boat builder in the country, capable of producing 220 catamarans a year and employing 1 700 people. Vision Yachts in Knysna produces 12 to 14 of its Vision 444 catamaran per year, helped by winning an European award for the best catamaran in its class in 2024.

Cape Racing Yachts, also based in Cape Town, builds specialised, high-tech racing yachts for hardcore sailors, while several other companies produce large, luxurious catamarans. Davidson says the smaller builders produce between one and 10 vessels a year.

“Southern Wind, Cape Town’s superyacht specialist, exports exclusively to Europe, producing one or two vessels annually, each retailing at around R270 million.

“Supporting them is an ecosystem of sail lofts, mast and spar builders, rope manufacturers, rigging specialists, carbon-fibre fabricators, upholstery workshops, and stainless-steel component makers. The city also hosted Africa’s largest milling and 3D-printing facility, drastically cutting tooling and prototyping times,” says Davidson.

Employment

According to a study by economic analysts Monique Petersen and Jodie Posen for the Cape Town metro, the construction of pleasure and sporting boats has accounted for the largest share of employment within the industry.

“Formal employment in this segment rose from 1 739 full-time equivalent jobs in the 2015 tax year to 3 206 in 2024, although it declined in 2025.

“Over a ten-year period, the subsector recorded overall growth of 34%,” they say.

“It will take time to understand the full impact of the tariffs,” Petersen wrote in a report.

“What is clear is that Cape Town’s competitiveness cannot be taken for granted.”

For several years before the Covid-19 pandemic, the industry recorded average annual growth of 17%, even as the broader SA economy limped through a period of stagnation.

Today, Cape Town produces more luxury catamarans than any other city in the world, often struggling to find marina space to store finished vessels before shipping them off.

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