Canadian Apparel News - 2025

Trade figures continue to show that Canadian exports of made-in-Canada apparel are fairly stable and in some cases growing. We have limited access to concrete figures as trade data takes about three months to be compiled and published (and the most recent monthly data from the Canadian government is delayed). One statistic that is available on a real-time basis is the usage of tariff preference levels (TPL) which allow Canadian manufacturers to produce apparel using imported raw materials (yarns/fabrics) and export these goods to the US duty-free.   Such quotas apply to a variety of products: Exports of wool apparel from …

Canada and Indonesia announced a new Comprehensive Economic Partnership Agreement (CEPA) on September 24th. The agreement has been touted by the Canadian government as a significant development. As the press release from the Prime Minister’s Office notes, “We are building our strength at home, diversifying our partnerships abroad, and building a web of new connections to pursue our interests.” It is anticipated that the agreement will take effect in 2026. In the interim, it requires parliamentary review and approval.    The agreement has positives and (somewhat puzzling) negatives:  On the positive side, the apparel rule of origin is a cut-and-sew rule …

U.S. trade officials on Tuesday September 16th started the formal review process for the U.S.-Mexico-Canada Agreement (USMCA), inviting public comment ahead of next year's renewal of the pact.   This starts what is likely to be a highly contentious process, particularly against the backdrop of the tariffs President Trump imposed this year on both countries. USMCA  (CUSMA) entered into force in 2020. The terms of the agreement call for a mandatory joint review in July 2026. If the three countries do not agree to extend the pact, it will then end in 2036. The Office of the U.S. Trade Representative …

In late August, CAF arranged to present a webinar in early September on new DDP arrangements for companies wantting to ship merchandise to the United States through the postal service. Previously low volume shipments could qualify under the de minimis entry.  This was terminated on Aug. 29, 2025. The presenter was to have been Zonos.  They have an agreement with Canada Post and are authorized by the US government to collect duties covering postal shipment.  We have not yet been able to present this overview of the Zonos / Canada Post offering.  This stems from communications policies/restrictions imposed by Canada …

CAF is setting up a working group/committee to bring together CAF member firms with a significant interest in the renewal of CUSMA/USMCA.    A mandatory review of the agreement must take place in 2026.  Contrary to some of the chaos relating to US Tariff actions, there is a legal process in the United States that the administration must (and we believe they will) observe.  This begins with an invitation for public comment which will be published by early October.  While the Canadian government sought input from industry in fall, 2024, it is possible that a new round of information gathering will …

CAF members are now eligible for preferred pricing on Oracle NetSuite. NetSuite is a unified, cloud-based business management platform helping tens of thousands of customers across the globe automate core processes and provide real-time visibility into operational and financial performance.  CAF members can take advantage of preferred  pricing for the starter, standard, and premium editions of NetSuite ERP/Financials.  For more information click here.

August 28 is the deadline for pre-budget submissions.  The federal budget is typically presented in the spring. Due to the timing of the election earlier this year, the government delayed a full federal budget until the fall.  While the timing for the Budget to be tabled remains unclear, the date for pre-budget submissions is August 28, 2025.    CAF intends to submit comments, primarily around tariff issues and other policies that had been outlined in the 2024 Fall Economic Statement (FES). Owing to the resignation of Prime Minister Trudeau, certain provisions of the FES have not been implemented, nor was a …

You are invited to participate in a virtual workshop on digital product labelling on Thursday, July 3, from 9:00 AM to 2:00 PM (ET).  This interactive workshop will feature: A presentation by the European Commission on the Digital Product Passport initiative   A presentation by GS1 on global standards supporting product data management.   A demonstration of Peer Ledger’s QR code-based digital labelling platform    An opportunity for you to provide direct feedback on Peer Ledger’s made-in-Canada technology.  Innovation, Science and Economic Development Canada’s (ISED) is providing the funding for this initiative, with Environment and Climate Change Canada (ECCC) participating. Your participation will help …

A recent article in Sourcing Journal (and also on Yahoo.com) has contributed to misunderstandings concerning the current tariff situation between Canada and the United States regarding consumer products such as apparel. The article in question,  Canada Cools US Trade Tensions By Drawing Down Retaliatory Duties, cites recent adjustments to some of the surtaxes imposed on US products by the Canadian Government, but misinterprets the scope of such adjustments. The article suggests that Canada has withdrawn a 25% tariff (the Canadian government refers to these as surtaxes) that applies to US products such as apparel.  These surtaxes were put in place …

We have received requests from members to source the following made-in-Canada products. Denim (women), leather jackets and baseball caps.