What happened

Shares of Polaris Industries (NYSE:PII) climbed 14.2% in June, according to data from S&P Global Market Intelligence, despite a relative lack of company-specific news. Instead, Polaris rebounded last month along with the broader market as trade tensions eased. 

Man riding a silver Indian Motorcycle from Polaris.

An Indian motorcycle, one of Polaris' products. Image source: Polaris Industries.

So what

The stock plunged 17% in May on concerns over rising tariffs; CEO Scott Wine even stepped out in early May to call any potential increases in tariffs "downright catastrophic" to its business. It certainly helped when the U.S. decided to end controversial tariffs on steel and aluminum from Canada and Mexico in late May -- a move Polaris publicly applauded as reflecting the Trump administration's "continued efforts to modernize decades-old trade agreements and support U.S. companies."

But concerns remain for tariffs on goods imported to the U.S. from China, which Wine says hurts his company despite the fact it has invested heavily in U.S. plants to assemble those goods. If the China tariff situation is not resolved, he added, Polaris may be forced to shift production jobs out of the U.S. and into its Mexico factories.

That said, U.S.-China trade relations took an encouraging turn in early July when both countries agreed to resume trade talks. But considering China is now reportedly demanding all tariffs be ended in order to reach a deal, it seems an amicable agreement is far from guaranteed.

Now what

Barring a preliminary update on its business between now and Polaris' next quarterly report on the morning of July 23, I suspect the stock will remain at the mercy of the broader market's movements and new trade developments. So as is the case every quarter, check back here at Fool.com for our coverage of that report.