Canadian fashion brands are feeling the heat from the U.S.’s latest round of tariffs on garment-producing countries like China, India, and Vietnam—key manufacturing bases for the industry. Although Canadian-made goods aren’t directly impacted, many brands design and produce overseas, then export to U.S. customers, making them vulnerable to Washington’s escalating trade actions.
Retail heavyweights such as Aritzia, Lululemon, and Gildan saw stock dips following President Donald Trump’s tariff announcement, sparking concern throughout the industry. Emma May, CEO of Calgary-based brand Sophie Grace, says the rising costs may derail her U.S. growth plans, as her China-made products become too costly for American consumers under a new 34% tariff.
The end of exemptions for small shipments from China further complicates cross-border sales, with trade experts warning that rerouting goods through Canada won’t sidestep penalties.
For brands like Hatley, which makes children’s clothing in China and India, the new tariffs may lead to mass order cancellations and shrinking revenues, as U.S. sales account for half their business. Shifting manufacturing back to North America remains impractical due to a lack of specialized skills and infrastructure.
The industry had already started moving production out of China due to geopolitical tensions and human rights concerns. But with new tariffs targeting other Asian countries like Vietnam and Cambodia, alternatives are rapidly disappearing.
While some Canadian brands are now eyeing growth in Europe and Australia, many hope the U.S. administration reverses course before irreparable damage is done to cross-border fashion trade.
Source: Swifteradio.com
