While the U.S. hasn’t directly targeted Canadian fashion companies, many countries that manufacture their products face steep tariffs that are likely to drive up prices, destroy old trade relationships, and make supply lines less certain.

Calgary

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

Canadian fashion brands are facing significant challenges as the United States implements steep tariffs on key manufacturing hubs, including China, India, and Vietnam. Although Canadian companies are not directly targeted, the tariffs affect many countries that produce their goods, potentially increasing costs and disrupting established trade relations. The removal of the tariff exception for small orders from China to the U.S. further compounds the difficulties, leading to concerns over customers canceling orders.

A Calgary-based women's workwear company, which manufactures in China, may find the U.S. market becoming financially prohibitive due to increased costs. Similarly, a Montreal-based children's clothing maker will likely impose surcharges on U.S. orders. These tariff measures are impacting stock prices for major fashion brands, including Aritzia and Lululemon, and have significant implications for both large and small companies within the industry.

The expertise and affordability in manufacturing that countries like China and India offer are unmatched domestically, complicating efforts to move production elsewhere. As the tariffs affect a wide range of industries, Canadian companies making products overseas for the U.S. market must reassess their strategies. The current situation leaves companies, both in fashion and other sectors such as retail and toys, navigating a challenging landscape and determining their next steps.



Tariffs aimed at China hit Canadian fashion brands

Canadian fashion companies from major mall brands to small businesses have been thrown a nasty curveball by the White House. All of those rules are changing and the ground is shifting under our feet. Even though the U.S. hasn't targeted Canadian fashion directly, it's imposing steep new tariffs on major garment making hubs like China, India and Vietnam. This Calgary-based women's workwear company manufactures in China and has American customers. And maybe the U.S. market is just not something we can go at because our product will end up being just far too expensive for that customer. On top of tariffs, a previous exception allowing small orders from China to the U.S. without tariffs will soon be gone. I think that 25% of my customers will cancel their orders. This Montreal kids clothing maker will soon have to slap a surcharge on all orders south of the border. What people have to understand is that making clothing in India and China, it's not just because labour is cheap, there's an expertise there that does not exist here. One of my members called this tariff hell. Stock prices for fashion giants Aritzia and Lululemon tumbled when the tariffs were announced and are still down. Even companies that try to shift away from China to avoid tariffs now can't find a safe country to move to. Smaller companies, it could be really devastating. And for very large companies, it could be very devastating. It's just everyone's in the same boat. It's not just fashion. Any company that makes product overseas and sells it in the U.S. is trying to figure out what to do next. They're going to be impacted by this whether we're talking clothing, retail, toys, other items that they want to sell into the United States. The owner of this women's wear company now focusing on customers north of the border. Paula Duhacek, CBC News, Calgary.

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