Tariffs have been one of the hottest topics in the news over the past few months. All grill companies and retailers were asked about it in their previous earnings calls, and I expect more questions in this upcoming round.

Supply chains in outdoor cooking are global, so tariffs have a major impact to an already struggling sector. Even companies that produce in the US are impacted because if steel and component imports carry a tariff, it will create more demand on domestic products, and increase the price.

One of the biggest headline grabbers has been the proposed tariffs on goods from Canada. There are two well-known grill companies in Canada, Napoleon and Broil King, who both supply to local retailers here in the US.

Napoleon is based outside of Toronto in Barrie, Ontario, where they manufacture their higher end model lines, with about 30% of their sales coming from the US. Broil King is also headquartered in the greater Toronto area, and manufactures at two facilities in the US and one in Ontario.

With the possible tariffs on the horizon, Napoleon placed a full-page ad in the Toronto Star paper over the weekend that was an open letter to Canadians about supporting Canadian brands.

Napoleon has worked hard to build their brand in the US, where they’re known for making high performing, quality products. They don’t plan to give that up any time soon, but it may come at a cost to Napoleon and consumers.

According to an interview piece with CTV News, to remain competitive in the market, they believe they can limit price increases from tariffs to 10%. That involves working with retailers and eating some margin.