šŸ‡ØšŸ‡¦ Trade Wars & Canadian Fashion: How Tariffs Are Reshaping Style, Supply Chains & Opportunity

Section35

Source: SECTION35

Hey everyone, Yanie here! A Canadian based in Milan (with 11 years of China market experience , propelling fashion and lifestyle brands ), I’m always watching how global shifts impact the business of fashion. Let’s talk about how tariffs will impact the Canadian fashion spectrum.

If you’ve been following the news, you know the U.S. just dropped a 25% tariff bomb on Canadian imports. Canada retaliated with a $155 billion tariff package targeting American goods. But what does this mean for our fashion industry? Let’s break it down — and why there’s hope hidden in the chaos.

šŸ›‘ The Tariff Tangle: What’s Happening?

The U.S. claims these tariffs (which also hit Mexico and China) are about curbing immigration and drug trafficking. But let’s be real: Canadian fashion brands are caught in the crossfire.

From textiles to cosmetics, the ripple effects are massive. Small designers who rely on cross-border supply chains are sweating margins. Big players like Lululemon and Aritzia — who produce most of their collections overseas — might pass costs to consumers. And Canada’s retaliation? It’s a high-stakes game of economic chicken.

But here’s the twist: This crisis is fueling a ā€œMade in Canadaā€ revolution.

šŸ Reshoring Fashion: Geopolitics vs. Sustainability

As highlighted in this insightful piece by The Interline, geopolitical tensions like tariffs might achieve what sustainability pledges couldn’t: reshoring production.

ā€œFor years, ā€˜ethical fashion’ urged brands to localize supply chains. Now, tariffs are making it a financial imperative.ā€

Canadian designers are leaning into this shift:

  • Toronto’s Encircled champions 100% domestic production.
  • Vancouver’s Duer sources denim from Alberta mills.
  • Montreal’s Atelier B partners with Indigenous artisans for knitwear
  • Canadian fashion brands already having key global success cases:Ā MackageĀ ,Ā Moose Knuckles CanadaĀ ,Ā RUDSAKĀ ,Ā Pajar CanadaĀ ,Ā Psycho BunnyĀ , M0158 etc. along with more local successes and revamps such asĀ Groupe DynamiteĀ who went IPO on Nov 2024.

The takeaway? Reshoring isn’t just about tariffs — it’s about storytelling. ā€œMade in Canadaā€ carries weight in a world hungry for authenticity.

✨ Global Spotlight: Canada’s Fashion Fightback

Despite trade tensions, Canada’s fashion scene is shining internationally:

  • PremiĆØre VisionĀ on MontrĆ©al (April 22–23): The legendary textile fair debuts here, connecting designers with global suppliers.
  • WHITE SHOW MILANOĀ Canada Pop up of Indegenious Fashion Arts for MFW (Feb 27-Mar 2): 4 Canadian designers showcased in Milan and hosted by Ambassador of CanadaĀ Elissa GolbergĀ from Justin Jacob Louis and section35, MDW Jewlery, to Unotrthadox and Yana Manta
  • Paris Fashion Week: Keep an eye on Erdem and Beaufille — both Canadian-born brands with growing global clout.
  • Shanghai Fashion Week: Rising stars like Sylva (known for gender-neutral designs) are targeting Asia’s luxury markets.

What’s Next?

  1. Price vs. Purpose: Price vs. Purpose: Will shoppers stick with local brands if prices rise? For Gen Z, the answer seems clear — studies show they’re willing to pay more for ethical, sustainable choices ( source Deloitte). ā€œ I couldnt beleive the brand told me that sustainibility was a ā€œconceptā€ they selected for this seasonā€ says a GenZ fashion model during MFW.
  2. Supply Chain Reinvention: Expect more partnerships with Canadian factories. Toronto label Hoi Bo proves it’s possible — 100% domestic production.
  3. Policy Pressure: Will Ottawa step in with grants or tax breaks? The industry is lobbying hard.

šŸ”„ The Big Question

Is this trade war a curse — or the best thing to happen to Canadian fashion?

I’ll say this: Challenges breed innovation. Tariffs are forcing us to rethink how and why we design. And with global eyes on events like PremiĆØre Vision and White Milano, Canada’s creativity can’t be tariffed out of existence.

What do YOU think?

  • Will you pay more for ā€œMade in Canadaā€?
  • Should the government intervene?
  • Which local brands are you supporting?

Let’s chat in the comments! šŸ‘‡

P.S. Follow me/subscribe for more hot takes on fashion, geopolitics, and building bridges between Milan, Canada, and China. šŸŒāœØ

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