BRP Inc. executives said the Ski-Doo maker needs to stay calm in the face of tariffs proposed by U.S. president-elect Donald Trump — tariffs that could hurt a manufacturer that depends on Mexican production.
"I don't think we should overreact right now," chief financial officer Sébastien Martel told analysts on a conference call Friday."We should not speculate too much, because there are hundreds of different possibilities."
He stressed the advantage of Mexico's lower labour costs as well as its skilled workforce and the benefits of a North American free trade agreement.Roughly 10 per cent of BRP's goods are sourced from China, Martel noted, adding that those parts are"less technically complex." "We are used to dealing with evolving trade agreements and have always succeeded in finding solutions to new tariffs," said CEO José Boisjoli."With the return of the Trump administration, the risk of tariffs on powersports imports into the U.S. market has risen materially, with BRP potentially vulnerable," he said in a note to investors.
After an urge for outdoor activity sparked a sales boom during the COVID-19 pandemic, buyers responded to inflation and interest rate hikes by pulling back from pricey recreational purchases.Last month, the company laid off more than 120 employees in its home province of Quebec. The cuts followed some 1,150 layoffs across North America earlier this year, leaving it with roughly 20,000 workers globally.
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