As tariffs by the Trump administration continue to add complexity to global trade, manufacturers like BRP Inc. have had to adjust accordingly. One such approach, announced on Tuesday, was to suspend its full-year guidance for the 2027 fiscal year after a series of changes made to Section 232 tariffs on metals.

Section 232 concerns the import of aluminum, copper, and steel. On April 2, Trump approved a flat 50% import tariff on these metals while derivatives made from them would be tariffed at 25%. Products made outside the United States but using American metals would have lower tariffs at 10%.

Being a Canadian company based in Quebec, BRP’s vehicles are impacted by these tariffs. A statement released by the manufacturer on Tuesday explained imported snowmobiles (Ski-Doo and Lynx) and the “majority of ORV models” (such as Can-Am) would be subjected to a 25% tariff on their total value. Previously, a 50% tariff was imposed solely on the use of steel, aluminum, and copper in such vehicles.

BRP also noted that excluding mitigation measures, the potential incremental tariff cost of these tariffs would exceed $500 million for the rest of the year.

“Like many manufacturers, we are operating in a highly volatile and unpredictable tariff environment that continues to create uncertainty across the market,” BRP head Denis Le Vot stated. “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.”

Tariffs have been a controversial yet focal component of the second Trump administration’s financial policy. Several companies like BRP often stress that American tariffs could impact any safe harbor statements (also known as forward-looking statements) in their press releases.

“Given the fast-evolving situation and the high degree of uncertainty around the duration of a potential trade war, it is difficult to predict how the effects would flow through the economy,” reads BRP’s safe harbor statement. “New tariffs could significantly affect the outlooks for economic growth, consumer spending, inflation and the Canadian dollar.”

A full-year guidance consists of projections on a company’s financial performance in a given fiscal year. BRP’s FY27 guidance entailed $5,175–$5,325 in revenue for its year-round products and total company revenue of between $8,900 and $9,150.

Le Vot is currently two months into his tenure as BRP’s CEO and president.

Featured image credit: BRP Inc.