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Canadian wool and yarn producers look to untangle themselves from the U.S.
Producers are sending raw wool to China and the Czech Republic as 50% U.S. tariffs make cross-border processing uneconomic, industry advocates said.
The United States imposed 50 per cent tariffs on greasy wool and finished products, forcing Canadian producers to reroute raw wool to China and the Czech Republic to bypass trade barriers.
President Donald Trump cancelled the de minimis exemption last year, eliminating duty-free entry for imports under US$800 that Canadian producers had long relied upon for cross-border shipments.
Industry advocate Matthew Rowe called untangling cross-border ties "almost jarring," while retailer Enright Smith stopped stocking United States labels, pivoting toward European and Canadian sources instead.
New Brunswick's Briggs and Little avoids most tariffs by processing wool entirely in Canada. However, office manager Leah Little warned that U.S.-made machinery parts pose risk, saying tariffs create vulnerability for replacement parts unavailable domestically.
Wool mill owner Anna Hunter of Long Way Homestead envisions decentralized regional processing facilities to decouple Canada from foreign reliance. She argues the industry must "reckon with" building independent textile capacity to create long-term resilience.
The customs duties imposed by U.S. President Donald Trump have resulted in a tangle of red tape and additional costs for Canadian wool producers, and some are completely turning away from their U.S. customers.