Top brass at Polaris claim increased tariffs could wipe out a third of the company’s net income.

With rumours and rhetoric flying around the country about increased tariffs on certain goods, the CEO of Polaris is raising some red flags. In an interview with a news agency last week, Scott Wine called the implementation of a 25% tariff on Chinese good “downright catastrophic” in terms of the impact on the company and employees.

Headquartered in Medina, Minnesota, Polaris counts on no fewer than thirteen different American manufacturing facilities to assemble its products. This is in addition to more than a dozen office locations around the country. However, the maker of ATVs and snowmobiles relies on highly technical suppliers out of China for certain parts and pieces. Those items include wiring harnesses and stampings. Wine told reporters that the company would pursue an exemption for tariffs imposed on those types of raw materials.

The CEO argued that a loss of net income to that degree could force the company to move some production to Mexico, arguably the very thing that tariffs are designed to prevent. Polaris recently invested over $100 million to build a new plant on Greenbrier Parkway in Hunstville, Alabama. That facility employs roughly 1000 Americans.

Elsewhere in the company, RZR Factory drivers Wayne and Kristen Matlock topped the podium in Pro Turbo and Pro NA classes, respectively, at this year’s SCORE San Felipe 250. In the Pro Turbo class, RZR Factory driver Mike Cafro finished second. In the UTV World Championship, Polaris RZR Factory Driver Seth Quintero secured the UTV NA class win, giving the 16-year-old driver three-consecutive wins this season.