NPDA: What dealers really need to know about tariffs
The powersports industry is changing fast, with tariffs, supply chain disruptions, and an evolving M&A landscape reshaping dealership valuations and future opportunities. But you don’t have to navigate it alone. NPDA is hosting a free webinar for members ($80 for non-members) on May 22 at 1 p.m. EST that will include presentations from the Stanek-Haack Group, Performance Brokerage Services, and NPDA board member Mark Sheffield.
According to an article Sheffield recently wrote for NPDA, many in the powersports industry think tariffs are just adding 25% to the wholesale cost. But he says that’s an oversimplification that could cost your business money.
Rethinking tariffs
Sheffield explains that tariffs aren’t applied to what you pay as a dealer. They’re levied on the declared value of goods at the port of entry, often a very different number from your invoice.
For instance, Sheffield uses the example of a shipment of UTVs that arrives with a declared value of $1 million. If the tariff rate is 25%, the importer pays $250,000 to U.S. Customs immediately. But that declared value isn’t based on MSRP—or even your cost. It reflects the factory invoice value, often excluding warehousing, logistics, and domestic markup.
A $10,000 ATV might only have a declared customs value of $5,000. That’s what the tariff is calculated on—not the figure on your P.O.
Why does this matter?
Because how much a vehicle really costs upstream impacts what you ultimately pay, Sheffield notes. And more importantly, he says understanding the system gives you leverage.
Distributors and OEMs have strategies for minimizing tariff exposure. As a dealer, Sheffield argues that understanding those tactics helps you ask better questions, spot pricing anomalies, and negotiate smarter.
The takeaway
Tariffs will ripple through the entire supply chain. If you don’t understand how the costs are structured, Sheffield says you may end up eating margins that were never meant to be yours.
His advice: Know what declared value means; Understand what strategies your suppliers might use; And if something doesn’t add up in your pricing, dig deeper. He says you don’t need a law degree—just enough insight to protect your business.
For more information, visit NPDA.org, or to register for the webinar, click here.
