Al Root
Shares of industrial companies are taking it on the chin after a surprising update from Canadian company BRP.
BRP is short for Bombardier Recreational Products. It makes fun things, including Ski-Doos, Sea-Doos, ATVs, and boats, among other things.
Tuesday, the company suspended fiscal year 2027 guidance due to the recent changes to Section 232 steel, aluminum, and copper tariffs, which went into effect on April 6.
Section 232 gives the U.S. president the authority to restrict imports deemed a threat to national security. President Donald Trump used Section 232 to put 50% import tariffs on raw materials such as steel.
Before April 6, companies were paying a tariff on the value of steel and aluminum. Now, products made substantially of steel, aluminum, and copper will pay a flat fee of 25% on their full value.
The difference could be stark. As an example, a car might have a ton of steel in it, generating a tariff of $500 under the old system. Now, an imported $30,000 car could face a $7,500 Section 232 tariff.
"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 in a news release. "Despite the material burden of these tariff changes, we expect that, with our solid balance sheet, the agility of our teams, and the strong start of the year, we will be able to manage our business through this challenge and continue to push BRP forward."
BRP might be able to weather the storm, but investors hate uncertainty.
The tariff surprise sent shares of air conditioning companies Carrier Global and Lennox International down almost 10% and 9%, respectively. Stanley Black & Decker shares were off about 7%. Caterpillar and Cummins shares were both down more than 4%, while the S&P 500 was 0.4%.
All those companies use a lot of steel, aluminum, and copper.
BRP stock was hit the hardest, down 37% in midday trading. Investors really hate uncertainty.
Write to Al Root at allen.root@dowjones.com
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April 15, 2026 14:19 ET (18:19 GMT)
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