(RTTNews.com) - Brunswick Corp. ( BC ) announced that it has been granted exclusions from Section 301 tariffs for its 40, 50 and 60hp Mercury Marine engines. The engines are assembled by Mercury in China and sold globally.
The exclusions reduce Brunswick's estimated net pretax tariff impact in 2019 to approximately $17 million to $22 million, down from the estimate of $30 million to $35 million provided in the recent third quarter earnings call.
With the retroactive nature of the exclusions, the company anticipates a favorable change in 2018 pretax earnings, versus previous estimates, of approximately $4 million to $6 million. This estimated impact for 2018 is based upon the eventual refund of the tariffs paid to date on these engines since July, net of customer tariff surcharges that will be refunded to customers by Mercury Marine, as soon as practical. Mercury's engines were among the 1,300 products originally targeted for the 25 percent tariff.
The exclusion requests were reviewed and approved by both the United States Trade Representative and the U.S. Customs and Border Protection.
Read the original article on RTTNews (http://www.rttnews.com/2965547/brunswick-granted-exclusion-from-tariffs-on-engines-made-in-china.aspx)
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