BRP Shares Plunge 33% as U.S. Tariff Shift Triggers Financial Outlook Withdrawal

Key Facts

1BRP shares crashed 33% in their largest daily drop on record after the company withdrew its financial outlook.

2The company estimates incremental tariff costs exceeding $500 million due to changes in U.S. tariff rules on steel, aluminum, and copper.

3The tariff amendment imposes a 25% duty on the total value of imported vehicles, replacing the previous duty which only applied to metal content.

BRP Inc. shares suffered their largest daily decline on record, crashing 33% after the company withdrew its financial guidance for the year. The sell-off was triggered by an estimated $500 million increase in incremental costs due to a significant shift in U.S. tariff regulations. Under the new rules, a 25% duty is applied to the total value of imported vehicles, replacing the previous system that only taxed the metal content. This policy change regarding steel, aluminum, and copper imports has created a worst-case scenario for the manufacturer's profitability. Analysts noted that the massive drop reflects deep investor concern over the company's vulnerability to evolving trade policies. The situation underscores the broader risks facing international manufacturers as U.S. trade protectionism intensifies.