Wisconsin boat builder laments 'devastating effect' of Trump's trade war

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President Trump’s tariffs are “devastating,” says Marquis-Larson Boat Group president and CEO Rob Parmentier.

“It has had a devastating effect” on business, the Wisconsin boat builder told Yahoo Finance’s Midday Movers. “And the minute that tariff hit, you can imagine. People that have enough money to buy a boat, most of these people we sell to are also small business people.

“They got a lot of things going on, whether they be in Italy, or Portugal, or Germany, or our partners right across the border, Canada. You hit them with another 25% and 10%, and the first thing they say is, ‘No thank you. I don’t want a boat anymore.’”

A yacht sits on the Neuse river bank in between buildings after hurricane Florence passed through the area in New Bern, NC., Saturday, Sept. 15, 2018. (AP Photo/Steve Helber)
A yacht sits on the Neuse river bank in between buildings after hurricane Florence passed through the area in New Bern, NC., Saturday, Sept. 15, 2018. (AP Photo/Steve Helber)

But that’s not the only hit that Parmentier has taken. He says the cost of materials has also increased.

“The majority of your little boats, most of the money that goes into those is through materials. Fiberglass, resin, steel, aluminum,” he explained. “I have been hit with anywhere between 5% and 40% price increases from every one of my vendors. And it’s just not sustainable. So if nothing is done, we’re going to lose it. We’ve lost a big chunk of our business.”

‘I just don’t agree with the way he did it’

Parmentier hasn’t fired any employees, “but it’s coming,” he says.

“We cannot, I cannot sustain eating the losses from the tariffs,” he explained. “You know, we’ve been doing a lot of different things to keep everybody employed. But it’s been extremely difficult. I can’t make up for that business.”

Despite the impact tariffs have on his business, Parmentier continues to support the president.

“I have a lot of experience in the international shipping of stuff,” he said. “And what your average American doesn’t realize is it has been extremely unfair to us for decades.”

A Coast Guard boat is seen patrolling the waters in front of the Mar-a-Lago Resort where President Donald Trump held meetings with Chinese President Xi Jinping on April 7, 2017 in Palm Beach, Florida. (Photo: Joe Raedle/Getty Images)
A Coast Guard boat is seen patrolling the waters in front of the Mar-a-Lago Resort where President Donald Trump held meetings with Chinese President Xi Jinping on April 7, 2017 in Palm Beach, Florida. (Photo: Joe Raedle/Getty Images)

He added: “When I ship a boat to Australia, It’s 17%-plus tariff. We have 40%-plus tariffs in China. We have 75%-plus tariffs in Brazil,” he explained. “So I do understand what Trump and his team are trying to do. But …

“I just don’t agree with the way he did it. You got to do this in a much more negotiated fashion, instead of the way we went at it.”

Kristin Myers is a reporter at Yahoo Finance. Follow her on Twitter.

READ MORE: Wealth manager on trade tensions: ‘If you’re a soybean farmer in Iowa, it’s a war’

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