Canadian Pantyhose Maker Furloughs 40% of Staff on Trade-War Woes

The Canadian pantyhose industry is facing a significant challenge due to the ongoing trade war between the United States and Canada. Sheertex, a Montreal-based manufacturer of highly-durable pantyhose, has been forced to temporarily lay off 40% of its staff, citing financial uncertainty stemming from impending tariffs and the removal of the de minimis exemption on Canadian goods. The company, which does 85% of its sales in the U.S., is bracing for a 16% duty on top of a 25% tariff, which will significantly increase the cost of its products in the U.S. market.

The layoffs at Sheertex are a direct result of the trade tensions and highlight the potential job losses and economic impact that trade wars can have on Canadian businesses. The layoffs also contribute to the broader economic uncertainty, as consumers and businesses may reduce spending and investment due to the increased economic risk. The temporary layoff of 40% of Sheertex's staff serves as a clear example of how trade wars can have significant impacts on Canadian businesses and the broader economy.

To mitigate the impact of U.S. tariffs and diversify its revenue streams, Sheertex can explore alternative markets and strategies. Expanding into the European Union (EU) market, focusing on the Canadian domestic market, investing in e-commerce and direct-to-consumer sales, developing new product lines or partnerships, and lobbying for government support and assistance are all potential avenues for the company to consider.

The Canadian government has announced a CAD 1.7 billion investment in the manufacturing sector to support businesses and create jobs, which could provide some relief for companies like Sheertex. However, the long-term impact of the trade war on the Canadian economy remains uncertain, and businesses may continue to face challenges in the coming months and years.