Canadian wool and yarn producers are increasingly looking to reduce their dependence on the United States as new U.S. tariffs create additional costs, paperwork and uncertainty for an industry already facing long-standing supply-chain challenges.
The United States has imposed 50% tariffs on greasy wool imports and some finished wool products, putting pressure on Canadian producers that traditionally shipped wool south of the border for processing.
For some Canadian businesses, the tariffs have become the latest reason to reconsider their reliance on American customers and suppliers. Producers are exploring ways to strengthen domestic processing and create more resilient Canadian supply chains.
Judy Enright Smith, owner of Ottawa-based Wabi Sabi yarn shop, said the growing trade barriers have made what was once a straightforward business relationship increasingly difficult. Canadian producers and retailers are now facing additional costs and administrative hurdles when dealing with U.S. suppliers and customers.
Some Canadian mills have been better positioned to withstand the disruption. Briggs and Little, a New Brunswick company that has operated since 1857, sources its wool from a Canadian cooperative and manufactures its products domestically. However, the company still relies on some U.S.-made machinery parts and materials that could become more expensive under the tariffs.
In Manitoba, shepherd and wool-mill owner Anna Hunter of Long Way Homestead has stopped shipping to the United States after the Trump administration ended the de minimis exemption that previously allowed shipments valued below US$800 to enter the country without duties and tariffs.
Hunter said the experience has exposed a deeper weakness in Canada’s wool industry: its heavy dependence on the U.S. market and limited domestic processing capacity. She is advocating for a more decentralized Canadian wool-processing system, with regional facilities capable of handling different types of wool.
The challenge is significant. Hunter currently processes about 5,000 pounds of wool annually, which represents only a fraction of the wool she collects from her sheep. Expanding domestic processing would require investment in mills, infrastructure and a stronger Canadian textile market.
Industry advocates say building a stronger domestic wool sector could benefit farmers, producers, manufacturers and consumers while reducing Canada’s exposure to future international trade disruptions.
The Canadian wool industry’s efforts to diversify are part of a broader trend among Canadian businesses seeking alternatives to the U.S. market amid the escalating Canada-U.S. trade war.
While replacing the American market will not happen overnight, producers say the current tariff environment could provide an opportunity to develop a more self-sufficient Canadian wool and textile industry.
Swifteradio.com
