Canada’s New Tariff List Is Out: Which UTVs Are at Risk?

Canada’s September 8 counter-tariffs could make select U.S.-origin UTVs more expensive, but the final list does not support the claim that every American-built side-by-side is about to receive a 25% price increase.

The real answer lies within customs classifications that most buyers have never needed to consider. Canada included vehicle categories that could capture high-displacement sport machines, work-oriented UTVs, and electric models. At the same time, it omitted one passenger-vehicle classification that could cover many gasoline SXS models with engines of 1,000cc or less.

One more issue could override much of that analysis: Canada already has a remission order that expressly covers ATVs, UTVs and side-by-sides under its 2025 motor-vehicle surtax. As of August 31, the government had not publicly confirmed that the same relief would apply to the new September measure.

For Canadian riders shopping now, that leaves a real tariff risk without a reliable model-by-model answer.

The Tariff Threat Is No Longer Just a Lobbying Warning

On August 25, Canada announced counter-tariffs of 15%, 25% and 50% on C$27.6 billion in U.S.-origin goods. The measures take effect at 12:01 a.m. on September 8, 2026, following another breakdown in U.S.–Canada trade negotiations. The Department of Finance says the response is intended to match the value and rate of new U.S. tariffs on Canadian goods.

Before the final list was released, Moto Canada urged the government to exclude U.S.-made motorcycles, ATVs, side-by-sides, parts, and accessories. The industry association estimates that Canada sells 50,000 to 60,000 U.S.-assembled motorcycles, ATVs and SXSs annually, representing roughly 40% of the country’s powersports market.

That is a significant number, but it is frequently misread. It combines three vehicle categories and does not specify that 50,000 to 60,000 UTVs will be subject to tariffs. It also measures U.S. assembly, while the Canadian measure applies to goods that qualify as U.S.-origin under the country-of-origin marking rules cited by the government.

The final September 8 product list, updated August 26, makes one point clear: the threat is no longer entirely hypothetical. Several motor-vehicle classifications, including UTVs, are assigned a 25% rate. The schedule does not, however, identify familiar names such as RZR, Ranger, Pioneer, Mule or Gator.

Why the 1,000cc Line Matters

Canada’s tariff schedule includes gasoline passenger vehicles with engines above 1,000 cc, but it does not list tariff item 8703.21, which covers gasoline passenger vehicles with engines of 1,000 cc or less.

In simplified terms, the relevant entries look like this:

That omission could matter for many current Honda, Kawasaki, Yamaha, and Polaris recreational models using engines at or below 999 cc. If an importer classifies one of those machines as a passenger vehicle under 8703.21, the relevant code is not on the new list.

But engine size alone does not settle the issue.

A work UTV with a cargo box may be classified as a vehicle principally designed to carry goods. Tariff item 8704.31 is on the 25% list, and that classification does not depend on the machine having more than 1,000cc. A 999cc utility model could therefore face a different result than a 999cc recreation model.

The badge on the hood does not make that decision. Neither does a manufacturer calling a machine “utility,” “recreation,” or “crossover” in its marketing. The importer’s declared tariff classification, supported by the machine’s design and customs rules, controls.

Polaris Has the Clearest High-Displacement Test Cases

Polaris appears to have the clearest identifiable model-level exposure because it sells premium machines above the 1,000cc threshold.

The 2027 RZR Pro R Boost uses a 1,997cc engine. Polaris Canada listed the two-seat model from C$63,999 as of August 31, before destination, dealer setup, and tax. If a U.S.-origin example enters Canada under the over-1,500 cc passenger classification, it could be subject to the 25% schedule.

The Ranger XD 1500 family presents another potential case. Its 1,500cc engine places it above the excluded 1,000cc passenger line, while its cargo bed and work-focused design also raise the possibility of a goods-vehicle classification. Polaris Canada listed the Ranger XD 1500 NorthStar from C$51,499 as of the same date.

Those models are not confirmed as tariffed. Polaris operates off-road manufacturing in Minnesota and Alabama, but it also produces off-road vehicles in Monterrey, Mexico. Public manufacturer documents reviewed by SXS Nation do not map every Canadian model and VIN to a plant, legal country of origin, or Canadian customs code.

That distinction is critical. “Polaris” is not one country-of-origin answer, and U.S. assembly is not a substitute for the importer’s legal origin determination.

Honda and Kawasaki Face a Different Kind of Exposure

Honda says its Timmonsville, South Carolina, plant is the exclusive global production source for Pioneer and Talon side-by-sides. Kawasaki identifies Lincoln, Nebraska, as the production site for major Mule and Teryx models. That gives both companies concentrated U.S.-assembly exposure.

Their displacement picture is less dramatic. Current Pioneer, Talon, Mule, Teryx, Ridge, and KRX families generally use engines at or below 999 cc, including Kawasaki’s 999 cc Teryx H2 models.

If those machines enter Canada as passenger vehicles under 8703.21, they may sit outside the new list. Work-focused Pioneer and Mule models could face more uncertainty if importers classify them as goods vehicles under 8704.31.

Yamaha is in a similar near-term position. The company says every 2026 Yamaha side-by-side was assembled in Newnan, Georgia, while its current full-size engines generally remain below the 1,000 cc mark. Yamaha has also announced that it will end in-house ROV production in Georgia and rely on a manufacturing partner for future machines, adding another origin question for later model years.

John Deere’s Wisconsin-built Gator lineup deserves the same classification question because of its strong work and cargo focus.

Mexico-Built Can-Am Models Could Gain an Advantage

BRP says its core Can-Am Defender, Maverick and Commander side-by-sides are produced at its Juárez, Mexico, campus. A Canadian tariff aimed at U.S.-origin goods should not apply to a machine that legally qualifies as Mexican-origin.

That does not guarantee every Can-Am unit or component is unaffected, but it creates a possible competitive advantage. If a U.S.-origin Ranger, Pioneer, or Mule incurs a surcharge while a comparable Mexico-origin Defender does not, Canadian buyers may switch brands even if the underlying machines remain unchanged.

The same pressure could favor used inventory and machines sourced from other unaffected countries. Whether that happens will depend on actual importer classifications, remission, and the extent to which manufacturers absorb any tariff.

A 25% Tariff Does Not Mean 25% Added to MSRP.

The surtax is calculated on the importer’s customs value for duty, not the retail sticker price.

Using the calculation method in CBSA’s existing motor-vehicle guidance, a C$30,000 value for duty would generate a C$7,500 surtax. Because GST is calculated on the duty-inclusive amount, the tariff would also add C$375 in GST at the 5% federal rate. That results in C$7,875 in additional customs and GST costs before accounting for other effects.

That is an illustration, not a prediction that a dealer will add C$7,875 to a particular machine. The importer could absorb part of the cost, reduce incentives, change transfer pricing, redirect inventory, or pass a surcharge through the distribution chain. Provincial taxes, financing, and dealer pricing could change the buyer’s final amount again.

It would be equally inaccurate to multiply a Canadian MSRP by 25% and call the result the tariff. Buyers should ask a dealer to explain any “tariff fee” in writing and identify whether it comes from an actual post-September customs entry or a commercial replacement-cost adjustment.

The Existing UTV Remission May Be the Deciding Factor

Canada’s existing United States Surtax Remission Order contains unusually explicit language. Section 4.3 grants remission for “all-terrain vehicles, including utility terrain vehicles and side-by-side vehicles.” Section 5.1 places no time limit on imports covered by that section.

The problem is that the remission expressly applies to the United States Surtax Order (Motor Vehicles 2025). The current CBSA remission guidance repeats that scope and predates the newly announced September countermeasure.

As of August 31, no public implementing notice located by SXS Nation confirms whether the government will amend an existing order, extend the remission to the new tariff, or require importers to pursue separate relief.

If the government carries the UTV remission forward, much of the feared vehicle-level price impact could disappear. If it does not, classification and origin become decisive.

What Canadian Buyers Should Ask Before Signing

Machines already imported into Canada are not subject to a new import tariff retroactively. Canada also says goods already in transit when the measure takes effect are exempt. Dealers could still reprice existing units based on future replacement costs, but that would be a commercial decision rather than a new customs charge assessed against the retail buyer.

Before signing a purchase agreement in September, ask for written answers to five questions:

1. Is this specific VIN already in Canada, or when will it clear customs?
2. What country of origin does the importer declare for the machine?
3. What Canadian tariff item does the importer use?
4. Does the quoted price include a tariff surcharge, and is that surcharge refundable if remission applies?
5. Will the dealer or manufacturer protect the written price if delivery occurs after September 8?

U.S. buyers will not pay Canada’s tariff on a machine purchased in the United States. The indirect risk is that weaker Canadian demand could eventually affect factory schedules or model allocation. No manufacturer reviewed for this story has made a UTV production cut tied to the new Canadian measure.

The Honest Answer Before September 8

Canada’s final list creates a credible 25% tariff risk for select U.S.-origin UTVs, especially higher-displacement passenger models, work machines classified for carrying goods, and electric vehicles. It does not establish a blanket tariff on every American-built side-by-side.

The most important facts are still sitting with Finance Canada, CBSA and the manufacturers: the new implementing order, the treatment of the existing UTV remission, and the tariff classification and legal origin of specific Canadian-market models.

Until those answers arrive, Canadian buyers should treat a blanket promise of “no tariff” and a blanket claim of “25% more” with the same skepticism. Get the VIN, import timing, origin, tariff code, and price protection in writing before money changes hands.

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