Sheertex, the Montreal-based women’s clothing maker renowned for its highly durable pantyhose, has announced it will temporarily lay off 40% of its workforce due to impending U.S. tariffs, which adds tremendous financial uncertainty and pressure on the business. The announcement came from CEO Katherine Homuth, who explained the drastic measure affects around 140 of the company’s 350 employees and contractors.
Homuth detailed the predicament Her company faces, noting Sheertex generates approximately 85% of its sales from the U.S. market. Currently, the products already carry a 16% duty due to North American trade rules, which apply because of the foreign sourcing of some raw materials. The threat from the Trump administration to impose additional 25% tariffs on many Canadian goods would raise this total burden to 41%—a significant hit for any manufacturer attempting to remain competitive.
“We are in a worst-case scenario,” Homuth said, expressing her frustration amid deteriorated business conditions. “This puts immense pressure on our business model, especially as a company who has invested heavily in integrated manufacturing in Canada.” Along with potential tariffs, the company also faces challenges related to closing the final round of its latest fundraising scheme, which has already been delayed.
The additional challenges don’t end there. The removal of the de minimis exemption—previously allowing for direct-to-consumer packages valued below $800 to be shipped without duties—represents another seismic shift for Sheertex. Should the tariffs proceed as planned, this means the company will not only contend with rising duties but will also face increased pricing pressure when delivering products to U.S. consumers.
Homuth stressed these tariffs would not just delay her company’s operations but also impose broader difficulties on domestic manufacturing, which she describes as being fragile. “Canadian brands who rely on overseas production can pivot quickly, shifting suppliers or logistics providers to work around the tariff structure,” she noted. “But for companies like ours, who are building from the ground up here at home, the stakes are much higher.”
The tariff situation has sent ripples through the industry, prompting calls for action from businesses and government officials alike. The Canadian Chamber of Commerce has echoed Homuth’s concerns, advocating for the government to reconvene Parliament to address trade tensions explicitly. After Prime Minister Justin Trudeau's resignation, suspending Parliament since early January, many business leaders have expressed unease about the lack of representation during these trying times.
“We need to send a strong message to President Trump and the world...” said Candace Laing, CEO of the Canadian Chamber of Commerce. She stressed the urgency of addressing the tariffs, emphasizing how businesses, workers, and families are left hanging due to uncertain policy decisions. The sentiment across the board is clear: like Sheertex, many Canadian companies will suffer if immediate action isn’t taken.
The delicate balance of trade between Canada and the U.S. has never been so precarious. The ramifications of these decisions not only impact Sheertex and its employees but also threaten the integrity of Canadian manufacturing as more companies push against these trade barriers. Time will tell how the government responds, but for now, Sheertex and its workers are left grappling with the consequences of changing trade dynamics.