Canadian pantyhose-maker Sheertex is temporarily laying off 40 per cent of the company’s staff, in part because of tariffs the U.S. has promised to place on Canadian goods, the company’s CEO said on Wednesday.
Katherine Homuth says the Montreal-based manufacturer of highly durable tights employed about 350 staff before the cut. The company is facing tremendous financial uncertainty because of delays in closing the final portion of its most recent fundraising, she said.
She also placed blame on impending tariff changes being made by the U.S., where Sheertex does 85 per cent of its sales.
Homuth’s business stands to not just be hurt by the U.S.’s impending 25 per cent tariff, but also on the removal of the de minimis exemption, which previously meant all direct-to-consumer orders under $800 were duty free.
The removal of the de minimis exemption would push Sheertex to face what Homuth says is a 16 per cent duty on top of a 25 per cent tariff should the U.S. follow through with its threat. Homuth says the month-long pause on tariffs is not enough to help her business.
