BRP Faces Massive Tariff Headwinds as U.S. Trade Changes Shake the Powersports Industry

Canadian powersports giant BRP — parent company of Can-Am, Sea-Doo, Ski-Doo and Lynx — is facing one of the biggest financial challenges in its recent history following major changes to U.S. tariff policy. The company recently announced it is suspending its Fiscal Year 2027 financial guidance after revised U.S. Section 232 tariffs dramatically increased the cost of importing many of its vehicles into the United States.

According to BRP, the revised tariff structure now applies a 25% tariff to the total value of imported snowmobiles and most off-road vehicles rather than only taxing the steel, aluminum, and copper content of those products. The changes took effect on April 6, 2026, and the financial impact is substantial. BRP estimates the revised tariff rules could add more than $500 million in additional costs during the remainder of the fiscal year before any mitigation efforts are implemented.

The announcement immediately rattled investors. BRP shares plunged sharply after the company withdrew its guidance, with analysts pointing to uncertainty surrounding future pricing, margins, production strategy, and consumer demand.

A major factor behind BRP’s exposure is its manufacturing footprint. Many Can-Am off-road vehicles and Ski-Doo products sold in the United States are built in Canada and Mexico, making them especially vulnerable to import tariffs. Industry analysts noted that BRP is more exposed than some competitors because a significant percentage of its production occurs outside the U.S.

The tariff situation has also created a sharp contrast between BRP and competitors like Polaris. Polaris recently stated that the revised tariffs are not expected to materially impact its 2026 guidance due in part to its larger U.S.-based manufacturing footprint and stronger domestic supplier network.

For consumers, the biggest question is whether tariffs will translate into higher prices on new Can-Am side-by-sides, ATVs, Ski-Doos, and Sea-Doos. While BRP has not announced broad pricing changes yet, the scale of the added costs will likely force the company to pursue a combination of price increases, supply chain adjustments, production shifts, and cost-cutting measures.

The broader powersports industry is also watching closely. Dealers and OEMs are already dealing with softening consumer demand, higher interest rates, and elevated inventory levels following the post-pandemic sales boom. Additional tariff-driven price increases could create even more pressure on sales throughout the industry.

Despite the uncertainty, BRP says it remains financially stable and believes its strong balance sheet and operational flexibility will help it navigate the challenge. In its official statement, CEO Denis Le Vot acknowledged the “highly volatile and unpredictable tariff environment” while expressing confidence that the company can continue moving forward despite the disruption.

For off-road enthusiasts, the situation could become one of the biggest business stories the powersports market has seen in years. If tariffs remain in place long term, they could reshape pricing, manufacturing strategies, and even future model availability across the UTV, ATV, snowmobile, and personal watercraft markets.