BRP estimates tariffs will cost company an estimated $40 million
During its annual and fourth-quarter earnings call March 26, BRP says it anticipates the recently imposed tariffs will cost the company an estimated $40 million this year.
On April 2, Trump announced his long-awaited “reciprocal” tariffs, asserting a 10% tax on imports from all countries. Trump says the U.S. will charge a 34 percent tax on imports from China, but goods from Canada and Mexico will be exempt from the 25% tax if imports are USMCA-compliant.
Although the tariff situation remains fluid, BRP says it’s in a good position, having leveraged free trade agreements the U.S. has made with Mexico and Canada. So, despite 60% of its revenue generating from the U.S., and most of what it sells the U.S. originates from Mexico and Canada, the United States-Mexico-Canadian Agreement – as it currently stands – should keep the company’s tariff hit minimal.
“We have limited exposure to imports from China into the U.S., or imports from U.S. to Canada,” says Sebastien Martel, chief financial officer at BRP. “And while we are impacted by U.S. tariffs on steel and aluminum, the cost is relatively small as the exposure is mostly limited to our [parts and accessories] business.”
However, the company says it will continue to monitor the ever-changing situation, since the current USMCA is under review in 2026 and could be renegotiated.
“Can there be changes to the USMCA? I think, yes, that’s a very likely probability,” Martel says.
“The last time there were changes to the USMCA, there was a transition period that was put in place to allow companies to adjust. And we’ve always been flexible and adapted our operations to make sure that we leverage the new rules as they come into play.”
BRP reported an annual revenue of $7.8 billion (CDN), compared to $9.96 billion in sales the company made last year, a 21.3% decrease. BRP’s revenues fell to $2.1 billion for Q4 2025, compared to $2.6 billion during the same period in 2024, a decrease of 19.7%.
Net income was also down annually, as the company brought home just $62.7 million in the 12-month period ending Jan. 31, compared to last year, when it earned $931.7 million (CDN) during a same 12-month stretch.
The company’s complete financial results are available in the Quarterly Reports section of BRP’s website.
