-- BRP (DOO.TO), down 23% on last look in U.S. pre-market trading, Wednesday said it is suspending its full-year fiscal 2027 guidance.
The suspension follows the U.S. imposing new tariffs on steel, aluminum and copper imports, which would mean a 25% tariff on BRP snowmobiles and most of its off road vehicles (ORV) models, the company said.
The new tariffs replace the previous 50% tariff on applicable metal content only. BRP estimates the potential incremental tariff cost to be over $500 million for the rest of the year, before any mitigation measures that could partially offset these impacts.
"Like many manufacturers, we are operating in a highly volatile and unpredictable tariff environment that continues to create uncertainty across the market," said chief executive Denis Le Vot. "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."
BRP shares were last seen down US$17.99, to US$60.46, in New York trading.