Duty Remission
Canadian firms that need to use US fabrics in their production - take note of the following.
Canadian tariffs on US products
Canada's response to US tariffs was to set up as a 2 stage strategy:
Stage 1
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The first stage 25% tariffs on a range of primarily consumer-focused products - including apparel and other products made from textiles (carpets, drapes etc.).
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25% tariffs on these products were introduced by Canada on March 4th, and they remain in place today. On an annual basis these goods represent imports of $870 million.
- The list of products from the United States subject to 25 % tariffs effective March 4, 2025 is available here: Link
Stage 2
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The Canadian government has also created a list of products that may be subject to a 25% tariff as of April 2. This includes virtually all textiles (yarns/fabrics).
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The Canadian government has requested comment on this list and has circulated information about how (if they are applied) companies would be able to have these tariffs refunded. This link also includes a template for duty remission applications. This process is referred to as duty remission.
- As the the government has stated: Remission represents an exception to the rules by providing for relief of otherwise applicable duties. As such, in all instances above, the federal government will only consider remission where it is required to address exceptional and compelling circumstances that, from a public policy perspective, are found to outweigh the primary rationale behind the application of the tariffs.
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Some Canadian apparel manufacturers need to use US-produced textiles in their manufacturing operations and they may apply for duty remission.
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CAF can assist, and we have member firms that can assist you as well.
Contact: Bob Kirke, bkirke@apparel.ca.