Polaris stock falls on BRP tariff concerns

Investing.com -- Polaris Inc. (NYSE: PII) shares fell 11% Wednesday morning after competitor BRP Inc. (NASDAQ: DOO) suspended its full-year fiscal 2027 guidance due to changes in U.S. tariff policy.

BRP shares tumbled 24% following the announcement. The Canadian manufacturer cited the recent amendment of Section 232 tariffs on steel, aluminum and copper imports into the United States, which took effect on April 6, 2026. The tariff change imposes a 25% levy on the total value of imported snowmobiles and most off-road vehicle models, replacing the previous 50% tariff on applicable metal content only.

BRP estimated the potential incremental tariff cost related to the amendment to exceed $500 million for the remainder of the year, before any mitigation measures. The decline in Polaris shares reflects concerns that similar tariff impacts could affect the Minnesota-based company, which also manufactures snowmobiles, off-road vehicles, and motorcycles.

"Like many manufacturers, we are operating in a highly volatile and unpredictable tariff environment that continues to create uncertainty across the market," said Denis Le Vot, President and CEO of BRP. "Despite the material burden of these tariff changes, we expect that, with our solid balance sheet, the agility of our teams and the strong start of the year, we will be able to manage our business through this challenge and continue to push BRP forward."

Both companies compete in the powersports market, producing similar product lines including snowmobiles and all-terrain vehicles. The tariff changes affecting BRP's imported products raised investor concerns about potential cost pressures across the industry.

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