Quebec manufacturers are facing significant challenges due to the looming threat of tariffs from U.S. President Donald Trump, leading to multiple layoffs across the province. With the U.S. being Quebec's largest trading partner, the anticipated tariffs are already affecting sales, prompting manufacturers to take urgent measures.
Sheertex, based in Montreal and known for its production of tights, is among the most affected. On Wednesday, the company announced it would temporarily lay off 40 percent of its 350 employees. "We are in a worst case scenario," wrote CEO Katherine Homuth on LinkedIn. The company faces tariffs as high as 41 percent on its U.S. shipments, significantly due to extra duties imposed on its imported raw materials.
The temporary layoffs come at a precarious time, as Sheertex is currently working to secure additional capital to maintain its operations. Homuth emphasized the importance of Canadian manufacturing, stating, "If you believe in the importance of making things here, now is the time to stand with manufacturers," highlighting the immense challenges Canadian companies face.
Another prominent company, South Shore Furniture, also announced layoffs affecting 115 employees. With about 70 percent of its sales targeting the U.S. market, the company reported drastic declines prompted by Trump's tariff threats. President Jean Laflamme noted the reduced sales had pushed American buyers to increase imports from Asia instead.
This drastic move to lay off staff includes 97 jobs lost at South Shore’s head office plant located 200 kilometers northeast of Montreal, with additional cuts at their Coaticook plant. The company issued a plea to consumers, urging them to support Canadian products during this unprecedented situation.
Meanwhile, Uniboard, another manufacturer based in Laval, revealed plans to temporarily close five production lines at its plant located in Sayabec, Gaspésie. This decision translates to job losses for 15 employees, representing less than 10 percent of their workforce. CEO James Hogg articulated concerns around the uncertainty these tariffs create for customer behavior, asking, "Are they going to cancel orders? Are they going to put things on hold?" His worries echo those felt across many sectors touched by international trade tensions.
While the decisions taken by Quebec manufacturers primarily aim to navigate the current storm as effectively as possible, the underlying issue remains: how the uncertain political environment influences their operational capabilities. With layoffs and production cuts across the board, the industry stands at a crossroads, hoping for clarity on the tariff situation soon.
The collective response from these manufacturers highlights the fragility of Quebec’s reliance on trade with the U.S. Companies are bracing for more challenging times should Trump's tariff policies go through as planned. Amidst this turmoil, advocates for manufacturing call for renewed local support, hoping to revive the strength of Canadian products.