Why Is PII Stock Down 11% Today?

• Earlier this month, President Trump issued a proclamation that significantly restructured the tariffs on steel, aluminium and copper.
• BRP on Tuesday said that the changed U.S. tariffs on steel, aluminium and copper leads to a 25% tariff on the total value of imported snowmobiles and the majority of off-road vehicle models.
• Polaris and BRP are major competitors who fight for the same customers in the same core categories of off-road, snow, and some on-road recreational vehicles.

Shares of Polaris Inc. (PII) fell more than 11% on Wednesday, on track for its worst session in over a year, after its arch-rival BRP Inc. (DOO) suspended its fiscal year 2027 guidance, citing change in U.S. tariffs on materials, including steel.

Earlier this month, President Trump issued a proclamation that significantly restructured the tariffs on steel, aluminium, and copper. The duties now apply to the full customs value of the imported product, and not just the metal content as before.

BRP on Tuesday said that the restructured U.S. tariffs on steel, aluminium, and copper leads to a 25% tariff on the total value of imported snowmobiles and the majority of off-road vehicle models, replacing the previous 50% tariff on applicable metal content only.

The company expects the potential incremental tariff cost to be more than $500 million for the remainder of the year. Mitigation efforts can potentially lower this cost, it added.

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

Nasdaq-listed shares of BRP were down 37% at the time of writing.

Polaris and BRP are major competitors that fight for the same customers in the core categories of off-road, snow, and some on-road recreational vehicles.

How Did Retail Traders React?

On Stocktwits, retail sentiment around PII stock rose from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘low’ to ‘high’ levels.

Meanwhile, sentiment around DOO stock rose from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘extremely high’ levels.

A Stocktwits user highlighted the many concerns weighing on Polaris at the moment, including higher gas prices and raw materials, in addition to tariffs. “I'm going wait to see that the trends get better before buying,” they said.

While PII stock has gained 55% over the past 12 months, DOO stock has added 46%. 

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