MJM Yachts has already felt the sting of tariffs.

The Associated Press reported that CEO Bob Johnstone was negotiating the sale of a 53-foot (16-meter), $2.2 million yacht to a buyer in Monaco when the European Union announced a 25% tariff on American-made boats as retaliation for the Trump administration’s tariffs on imported aluminum and steel.

The deal is now dead. So is the Rhode Island-based company’s plan to expand sales into Europe.

American boat makers are getting pummeled on multiple fronts by tariffs and stand to be among the industries hardest-hit in an escalating trade war.

President Donald Trump’s decision to impose tariffs on imported steel and aluminum has driven up the price of those essential materials for many boat makers. Europe, Canada and Mexico retaliated with tariffs on American-made boats. Meanwhile, new tariffs imposed on parts such as engines and navigation equipment imported from China are also pushing up costs.

As a result, they are selling fewer boats, considering raising prices and bracing for layoffs across an industry that employs 650,000 people in the United States at manufacturers, marinas and dealers.

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