Boating Business

81% of RI Mfgs Say Tariffs Will Increase Prices

In June, the Rhode Island Manufacturers Association (RIMA) and the Rhode Island Commerce Corporation, sent a survey to their members and 78.3% reported they either have or plan to raise prices as a result of federal changes to tariffs. While there are 68 boat builders and dozens of companies manufacturing components for boats in the tiny state, they are the canary in the coal mine for the country at large.

The survey, conducted from May 20 to June 27, 2025, gathered input from local manufacturers related to the impact of import duty and tariff changes announced this year. 81% of respondents categorized the impact as either “somewhat negative” or “significantly negative” in at least two areas of business.

  • Only 12.3% reported than none of the raw materials or components they use were imported, or they did not know.
  • 47.4% reported that 26% or more of their raw materials or components were imported.

Chart showing impact of Federal Tariff Changes Seen or Expected by RI Manufacturers

Key findings include:

  • 86% of ALL respondents said tariff changes and uncertainty have negatively impacted their Cost of Goods Sold (COGS).
  • 62% of ALL respondents reported negative impacts to their investment plans.
  • 76% of ALL respondents reported a negative impact on their bottom line.
  • Manufacturers outside the defense supply chain were substantially more likely to report negative impact on their ability to fulfill contracts on time compared to defense manufacturers (57.7% vs 42.5%). Non-defense companies also reported higher percentages of imported components or raw materials.
  • 93% of food manufacturers, medtech, and life sciences manufacturers who participated reported negative impacts to their bottom line, while 64% of fabricated metal manufacturers reported the same.

Along with quantitative data, the survey asked manufacturers to share what they’re experiencing in their own words. RIMA Executive Director Dave Chenevert said that many of these narratives were painful to read.

Chart showing Pricing Adjustments Seen or Expected by RI Manufacturers as a Result of Federal Tariff Changes

Manufacturers shared stories such as:

  • “Sales have slowed by 60% [because] of economic uncertainty. I’m trying to avoid layoffs. I pre-purchased a number of components [because] vendors told me prices would rise so that was a big outlay of cash.”
  • “Our raw glass has gone up 10% across the board even before the tariffs went into effect.”
  • We received a shipment of foreign gear boxes with a 10% tariff on top of the normal tariff. We plan to absorb the 10%, but we cannot say how we’ll address the next order.
  • We found that U.S. sources of some materials are still more expensive that those from overseas even with the tariffs.
  • As a shipyard I must bid for work, we bid blind and are held to a fixed cost for the duration of the build which could be up to 3 years. As a result of these tariffs we are padding our bids by 40% and our competitors are doing the same.
  • Nearly all my products are made in Rhode Island, but raw materials and some components come from outside the U.S. and costs are higher. My sales are down 30%.

The mission of the Rhode Island Manufacturers Association (RIMA) is to be the unified voice of the Ocean State’s manufacturers. RIMA advocates at the federal, state, and local levels for sensible policy solution.