South Africa’s luxury catamaran industry, a global leader in high-end boat building, is facing mounting pressure from American tariffs and policy uncertainty, leading to a sharp drop in new orders from its largest export market.
According to the South African Boat Builders Export Council, the country produces approximately 275 luxury catamarans annually, making it the second-largest producer globally after France. The industry was valued at nearly $300 million in 2024, exporting about 20% of its production, with the United States as its biggest buyer.
However, demand has faltered since the US imposed tariffs ranging from 10 to 30% in April 2025. Although the US Supreme Court ruled the tariffs illegal in early 2026, ongoing policy uncertainty has made buyers hesitant.
“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 affair is,” one industry spokesperson said. “We had sold one boat into the United States… halfway through he had to register that boat in a different jurisdiction to avoid the tariff.”
Some businesses report order books have shrunk by as much as 40% compared to the previous year. While production has not halted, many boat builders are now looking to diversify into newer markets, including Europe. Others have shifted into related sectors such as automotive to weather the slowdown.
Rising energy costs and the global push for sustainability are also driving interest in electric and hybrid catamarans. Advances in battery technology and eco-friendly systems are positioning South African builders for future growth.
“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,” another industry representative noted.
Despite current headwinds, the industry remains confident, betting on quality, innovation, and consistent recognition in global awards to ride out the storm.
