How to Make Smart Decisions in a Shifting Market Affected by Tariffs and the Luxury Tax

We’re not just in the business of selling boats—we’re here to help you make informed decisions that bring you and your family years of joy on the water. Lately, two hot-button issues have been making waves across the boating industry: tariffs and Canada’s Luxury Tax. While these economic shifts may seem daunting, we’re taking a proactive approach to ensure our customers know what’s going on—and why now might be the ideal time to buy.

Understanding the Current Landscape – Key Takeaways

  • Tariffs on boats are not currently in place under USMCA, but could change.
  • Canada’s Luxury Tax on boats over $250,000 is still active and impacting the market.
  • Current inventory prices are lower than what’s projected due to rising manufacturing costs and global supply pressures.
  • Buying now could save you thousands and secure your summers for years to come.

The Tariff Situation: Fluid but Watchful

As of April 2025, boats remain exempt from the current round of US and Canadian tariffs—thanks to the protective terms under the United States–Mexico–Canada Agreement (USMCA). But that doesn’t mean the coast is clear. Recent U.S. tariff threats, some linked to the so-called “fentanyl tariffs” and increased trade tensions with countries like China and Japan, have prompted both uncertainty and caution in the North American market.

While Canadian boats aren’t currently affected, Phase 2 of Canada’s counter-tariffs—which includes boats—is still waiting in the wings. This means that a shift in either country’s policy could result in significant price increases almost overnight.

So what does this mean for you?

If you’re considering buying a boat, now is a smart window of opportunity—before tariffs possibly roll in and drive up prices.

What’s the Deal with the Luxury Tax?

Since September 1, 2022, the Select Luxury Items Tax Act has added a 10% surcharge to boats priced over $250,000. In more detail, the tax is 20% of any amount exceeding $250,000 or 10% of the total cost, whichever is the lesser amount. It does apply to used products 2019 and newer in the same price range.  The policy was designed to target the wealthy, but in practice, it has crippled the Canadian recreational marine sector—with boat sales plunging by nearly 70%.

Real Economic Impact

  • Boat dealerships, service providers, and manufacturers across Canada have seen job losses and reduced revenue.
  • Rural and coastal communities, like Kaslo and others around Kootenay Lake, are particularly vulnerable.
  • Many buyers have started looking south of the border for their boats, resulting in lost Canadian business.

And what did Canada gain from this tax? Only $12 million in revenue in two years, despite projections of $52 million. That’s a $40 million shortfall—and a lot of unnecessary damage to local economies.

We have signed a petition to repeal this prohibitive tax. Of course, we want to help you and all of our customers have great experiences on Canadian waterways. We support a thriving boating and marine sector and invite you to join us in speaking out for the removal of this tax policy.

Why Spring 2025 Might Be the Best Time to Buy

With a 90-day pause on new U.S. tariffs currently in effect, and no immediate changes to the Canadian Luxury Tax, this spring may offer a brief reprieve before the next wave of economic changes.

Here’s why you should consider buying now:

1. Prices Are About to Rise

  • 2025 models are already priced significantly higher than 2024 or 2023 models due to increased labour and material costs.
  • As tariffs loom and global supply chains tighten, future pricing will almost certainly increase.

2. Inventory is Available—For Now

  • We have a great selection of new, non-current models at pre-inflation prices.
  • These boats are ready to go—no waitlists, no price hikes, and no supply delays.

3. Maximize Your Summer Fun

  • Ask yourself: How many more summers will you have with your grandkids?
  • A new boat offers countless opportunities for family memories—fishing, cruising, tubing, and exploring Kootenay Lake.
  • That’s the kind of return on investment you can’t quantify.

Jones Boys Boats—Your Advocate in Uncertain Times

We’re not just boat dealers—we’re community members, outdoor enthusiasts, and passionate advocates for Canadian recreation. That’s why we stay informed, engage with industry organizations like the Canadian Marine Retailers Association (CMRA) and NMMA Canada, and push back against policies that hurt our industry and our customers.

We’re also calling on policymakers to repeal the Luxury Tax and ensure that boats remain exempt from punitive tariffs. In the meantime, we’re doing everything we can to protect your interests—offering fair pricing, excellent service, and trusted advice.

FAQs About Tariffs and the Luxury Tax

Q: Are boats currently subject to tariffs?
A: No, boats are currently exempt under the USMCA agreement, but this could change depending on evolving U.S. and Canadian trade policies.

Q: Does the Luxury Tax apply to all boats?
A: No. It applies only to new boats priced over $250,000.

Q: Will prices go up in 2025?
A: Yes, due to rising production costs, material shortages, and potential tariffs, newer boats will likely cost more.

Q: Can I avoid the Luxury Tax?
A: Yes, you can purchase a boat under the $250,000 threshold or look at certified pre-owned options.

Let’s Chart the Course Together

We understand this is a confusing time, but we’re here to help you navigate it. If you’re in the market for a boat this spring or summer, now may be your best chance to lock in great pricing, secure a quality vessel, and guarantee your family some unforgettable fun on the water.

We invite you to visit our showroom in Kaslo or contact us online to speak with one of our team members. Let’s find the perfect boat for your life and your budget—before the next wave hits.

Ready to get started?

CONTACT US to explore our current selection while prices remain in your favour. Let’s make this summer one to remember.