The CEO of manufacturing company Polaris Industries is calling an impending tariff increase a catastrophe for his business.

In a phone call with CNBC Tuesday, Polaris CEO and Chairman Scott Wine flagged major implications of the White House’s plan to up tariffs on Chinese goods to 25%, effective Friday night if the U.S. and China aren’t able to strike a trade deal.

“At 25% it’s downright catastrophic in terms of impact on the company and employees,” Wine told CNBC’s Morgan Brennan.

Polaris has continued to pursue an exemption from the U.S. government on China tariffs .

Scott Wine, CEO, Polaris Industries
Scott Mlyn | CNBC
Scott Wine, CEO, Polaris Industries
The CEO of manufacturing company Polaris Industries is calling an impending tariff increase a catastrophe for his business.

In a phone call with CNBC Tuesday, Polaris CEO and Chairman Scott Wine flagged major implications of the White House’s plan to up tariffs on Chinese goods to 25%, effective Friday night if the U.S. and China aren’t able to strike a trade deal.

“At 25% it’s downright catastrophic in terms of impact on the company and employees,” Wine told CNBC’s Morgan Brennan.

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.

Polaris CEO: 25% tariff downright catastrophic Polaris CEO: 25% tariff downright catastrophic
20 Hours Ago | 01:39
The maker of snowmobiles, ATVs and motorcycles has already seen effects from earlier rounds of tariffs levied between the world’s two largest economies, and with Europe.

Polaris is factoring in roughly $90 million in additional tariff costs this year, thanks to the current 10% levy on some Chinese imports, as well as retaliatory tariffs on motorcycles imported from the U.S. into Europe in response to steel and aluminum tariffs.

If new tariffs are introduced on Friday, it’s expecting to take a hit of between $195 million and $200 million, Wine said.

The CEO also said the increased tariffs could erase a third of the company’s net income. The company has an employee stock ownership plan, and in this case employees own 5% of the company. Wine underscored the effect it could have on Polaris’s stock, and therefore employees.

“When we are hit with tariffs, that’s what I mean by impact to employees,” he said. “Through no fault of our own, one-third of our net income could go away.”

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