Polaris Inc. (NYSE:PII) shares dropped 11% on Wednesday morning after rival BRP Inc. (NASDAQ:DOO) withdrew its fiscal 2027 guidance, citing changes to U.S. tariff policy.
BRP stock fell sharply by 24% following the update. The company pointed to recent revisions to Section 232 tariffs on steel, aluminum and copper imports into the U.S., which came into effect on April 6, 2026. Under the new rules, a 25% tariff now applies to the total value of imported snowmobiles and most off-road vehicles, replacing the previous system that taxed only the metal content at a 50% rate.
BRP estimates the revised policy could add more than $500 million in incremental costs for the remainder of the year, before any mitigating actions are taken. The sell-off in Polaris reflects investor concerns that similar cost pressures could extend to the Minnesota-based manufacturer, which also produces 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 Polaris and BRP compete in the global powersports market, offering comparable product lines such as snowmobiles and all-terrain vehicles. The updated tariff framework has heightened concerns about rising costs and margin pressure across the sector.