Can-Am’s $500 Million Tariff Problem Could Shake Up the SXS Market

Are higher prices coming for Maverick, Defender, and Commander buyers?

The side-by-side market just got hit with a storyline that could matter a lot more than another new color package or model-year update.

Can-Am’s parent company, BRP, recently announced that it is suspending its full-year FY27 guidance because of changes to the U.S. tariff environment. That may sound like corporate investor language, but for riders, dealers, and anyone shopping for a new side-by-side, the meaning is much simpler:

Can-Am may be facing a massive new cost problem — and buyers could eventually feel it on the showroom floor.

According to BRP, changes to U.S. Section 232 tariffs on steel, aluminum, and copper imports took effect on April 6, 2026. For BRP, the change primarily introduces a 25% tariff on the total value of imported snowmobiles and most off-road vehicle models, replacing the previous structure that applied a 50% tariff only to the applicable metal content. BRP estimates the potential incremental tariff cost at more than $500 million for the remainder of the year, before any mitigation measures. Bloomberg reported that figure as roughly C$500 million, or about US$363 million.

That is not a small accounting issue. That is a market-moving problem.

And in the SXS world, it raises one big question:

If Can-Am’s costs go up, will the price of your next Defender, Maverick, or Commander go up with it?

Why This Hits Can-Am So Hard

To understand why this matters, you have to look at where Can-Am off-road vehicles are built.

BRP’s Juárez, Mexico campus is a major part of Can-Am’s off-road vehicle production footprint. In January 2026, BRP announced that its Juárez campus had produced 2 million vehicles since beginning operations in Mexico in 2007. BRP also stated that the campus is home to production of several key Can-Am off-road lines, including the Defender, Maverick, Commander side-by-sides, and Outlander ATVs.

That means the tariff issue is not just affecting some obscure product line that most riders will never see. It potentially hits the exact machines that drive Can-Am’s presence in the U.S. side-by-side market.

The Defender is one of the strongest utility machines in the industry. The Maverick lineup is a serious player in the performance world. The Commander sits in that crossover space for riders who want trail comfort, utility, and recreation in one machine. These are core Can-Am products.

So when BRP says a tariff change creates a cost impact of more than $500 million, SXS buyers should pay attention.

This Does Not Mean Every Can-Am Price Jumps 25%

Let’s be clear about one thing.

A 25% tariff on the total value of imported machines does not automatically mean every Can-Am side-by-side will get a 25% MSRP increase.

That is not how pricing works.

The tariff applies to the machine’s imported value, not necessarily to the final retail price after dealer margin, freight, setup, destination charges, financing, accessories, and local fees. BRP also said its estimate is before mitigation measures, which means the company will likely be looking for ways to soften the blow.

But even if the full cost does not get passed directly to buyers, someone has to absorb it.

That could mean BRP absorbs part of the hit. It could mean dealers see less flexibility. It could mean rebates and promotions get weaker. It could mean destination charges creep up. It could mean MSRP increases on certain models. Or it could mean a mix of all of the above.

For the average rider, the result may not look like a giant “tariff fee” printed on the sales contract. It may show up as a machine that is simply more expensive than it used to be, with fewer discounts available.

And in today’s market, that matters.

Can-Am Loyalty Is About to Be Tested

Can-Am has one of the most loyal customer bases in the off-road world.

Defender owners love their machines. Maverick riders are not exactly shy about defending the brand. Can-Am has built a strong reputation for performance, innovation, comfort, and premium features.

But loyalty has limits.

Many buyers are already stretched. Interest rates, insurance costs, trailer prices, accessories, and dealer fees have all made powersports ownership more expensive. Many riders are not just asking, “What machine do I want?” They are asking, “What machine actually makes sense for my wallet?”

That is where this tariff situation could become a real problem for Can-Am.

If two comparable machines are sitting on a dealer floor and one suddenly carries a bigger price tag, the brand-loyal buyer may still choose Can-Am. But the undecided buyer? The first-time buyer? The farmer is comparing work machines? The family is looking at monthly payments?

Those buyers may start looking across the aisle.

The Polaris Advantage

This is where Polaris enters the conversation.

Polaris recently stated that tariff policy changes are not expected to materially impact the company’s full-year 2026 guidance. Polaris specifically pointed to its significant domestic manufacturing presence, including facilities in Alabama, Indiana, and Minnesota.

Polaris also lists Roseau, Minnesota, as its largest U.S. manufacturing operation, producing snowmobiles and the Sportsman ATV, while its Huntsville, Alabama, facility produces the RANGER.

That gives Polaris a potential advantage in one of the market’s most important areas: price stability.

Now, let’s not oversimplify it. Polaris is not completely immune to tariffs or global supply chain pressures. Polaris also has a Monterrey, Mexico operation focused on off-road vehicle manufacturing.

But compared with BRP’s current warning, Polaris appears to be in a stronger position to manage this specific tariff shock.

And that could matter a lot on dealership floors.

If Can-Am is forced to raise prices, cut incentives, or protect margins, Polaris may not even need to make a huge move. It may only need to hold pricing steady while shoppers start doing the math.

Defender vs. Ranger Could Get Even More Interesting

The utility side-by-side market may be where this gets the most interesting.

The Can-Am Defender and Polaris Ranger have been locked in a major battle for years. Both machines have strong reputations. Both have loyal followings. Both are used by farmers, hunters, landowners, contractors, trail riders, and families.

But utility buyers tend to be practical.

They care about capability, comfort, towing, hauling, cab options, dealer support, and reliability. But they also care deeply about price. A few thousand dollars can quickly change the conversation, especially when buyers are comparing cab models, HVAC packages, work accessories, plows, tracks, roofs, windshields, and financing.

If the tariff pressure makes a Defender meaningfully more expensive than a comparable Ranger, Polaris could gain an opening with buyers who are less brand-committed and more payment-focused.

That does not mean the Defender suddenly becomes a bad buy. Far from it. The Defender remains one of the strongest utility machines in its segment.

But when price gaps widen, even great machines become harder to justify.

Maverick Buyers May React Differently

Performance buyers may be a little different.

Someone shopping for a Maverick R, Maverick X3, or high-end sport machine may be more willing to pay for the exact platform they want. In the performance world, brand loyalty, suspension feel, horsepower, handling, aftermarket support, and racing reputation carry a lot of weight.

A serious Can-Am performance buyer may not jump ship just because the price moves.

But even in the performance segment, there is a limit. Buyers cross-shop. Payments matter. Trade values matter. Accessories matter. And when a machine is already expensive, another pricing increase can push some riders toward used inventory, leftover units, or competing platforms.

That may be one of the most important ripple effects of this tariff story.

It might not just be about new Can-Am prices. It could also affect used values, trade-in decisions, leftover model demand, and how long machines sit on dealer floors.

Dealers May Feel the Pressure First

Before buyers feel the full impact, dealers may be the ones stuck in the middle.

Dealers already operate in a difficult environment. They have to manage inventory, floorplan costs, manufacturer programs, consumer financing, service capacity, and customer expectations. If pricing changes come quickly or incentives shift, dealers have to explain that to shoppers.

And buyers do not always care why a machine costs more.

They just know what the payment looks like.

If Can-Am models become more expensive or less aggressively discounted, dealers may have to work harder to close deals. On the flip side, existing inventory already on the ground could become more attractive if buyers believe future units may cost more.

That creates an interesting short-term buying question:

If you are already shopping for a Can-Am and find a strong deal on current inventory, waiting may not automatically save you money.

What Buyers Should Watch Next

For riders, this story is not over. The real impact will show up in the months ahead.

Here is what buyers should be watching:

Watch for MSRP changes on new Can-Am models. Pay attention to whether prices move on Defender, Maverick, Commander, and Outlander lines.

Watch for changes in rebates and financing. Sometimes the sticker price does not change much, but the deal gets worse.

Watch dealer inventory. If dealers start pushing current stock harder, that may signal concern about future pricing.

Compare Can-Am and Polaris side by side. Look beyond MSRP and compare real out-the-door pricing.

Watch the used market. If new machines get more expensive, clean used Can-Am units may become more desirable.

Ask dealers direct questions. Buyers should ask whether the quoted price is locked in, whether incentives are changing, and whether incoming units may be priced differently.

SXS Nation Take

Here is the honest take.

This tariff issue does not suddenly make Can-Am machines less capable. A Defender is still a Defender. A Maverick is still a Maverick. Can-Am has earned its place as one of the top brands in the side-by-side world.

But pricing matters.

If BRP is facing a tariff burden of more than $500 million, that pressure has to go somewhere. It may be absorbed by the company. It may be partially offset. It may show up in pricing. It may show up in fewer discounts. It may show up in dealer programs. But it is hard to believe a cost hit that large will have zero impact on the market.

That is where Polaris may gain an advantage.

Not because Polaris is perfect. Not because Polaris is untouched by global manufacturing issues. But because Polaris appears better positioned under this specific tariff change, and in a price-sensitive market, that could be enough to sway undecided buyers.

Can-Am loyalty is strong. But loyalty gets tested when monthly payments climb.

For riders, the smartest move right now is simple: compare real out-the-door numbers, pay attention to incentives, and do not assume yesterday’s pricing will still be there tomorrow.

The side-by-side market was already competitive.

Now, tariffs may have just turned pricing into the next major battlefield.