The CEO of Polaris Industries says an impending tariff increase is a catastrophe for his business, and could erase a third of the company's net income.
In a phone call with CNBC Tuesday, Polaris CEO and Chairman Scott Wine said the White House's plan to up tariffs on Chinese goods to 25% is "downright catastrophic in terms of impact on the company and employees."
The tariff increase will take effect Friday night if the U.S. and China aren't able to strike a trade deal.
Wine told Bloomberg in another call that he doesn't like to be vocal against the tariffs and undermine our negotiating position as a country. But added, “We just can’t stand for it."
Polaris has continued to pursue an exemption from the U.S. government on China tariffs and Wine said he remains hopeful that will still happen.
President Donald Trump said Sunday that tariffs on $200 billion of Chinese goods will increase to 25% on Friday, despite repeated claims by the administration trade talks were going well.
The tariff rate on those goods was originally set at 10%. The president said that trade talks with China are continuing, but are moving "too slowly" as Beijing tries to re-negotiate in Trump's view.
If Trump follows through with his threats, virtually everything imported from China to the U.S. would face some sort of tariff.
The NMMA says Section 301 tariffs are taking a toll on the recreational boating industry, increasing the price of hundreds of commonly used marine materials, parts and products, including fiberglass, inflatable boats, and trailer tires.
For some products, the additional cost to manufacturers is thousands of dollars. Additionally, some of these items have not been manufactured in the U.S. in decades and there are no viable alternatives.