The Globe and Mail reports in its Thursday edition that Ski-Doo maker BRP has suspended its financial forecast for the coming fiscal year, warning it faces an estimated hit worth several hundred million dollars from new changes the United States has made to its tariff policy. The Globe's Nicolas Van Praet writes that its shares closed down 35 per cent Wednesday in Toronto. The Valcourt, Que., company said in a news release late Tuesday that a recent amendment by the Trump administration of Section 232 tariffs on steel, aluminum and copper imports that came into effect April 6 results in a 25-per-cent levy on the total value of BRP snowmobiles sold into the U.S. and affects the majority of its off-road vehicle models sold into the country. BRP estimates the potential hit to its business to be at least $500-million for the remainder of the year, before any mitigation measures that could offset those costs. The company, controlled by Quebec's Bombardier-Beaudoin family in tandem with Bain Capital and Quebec pension fund Caisse, is three months into its fiscal 2027. "The magnitude of the impact is mind-blowing, but it is likely the worst-case scenario" for BRP, Stifel analyst Martin Landry said in a note to clients.
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