Cost and supply chain analysis
US Trade Representative Jamieson Greer confirmed that the ** per cent duty covers nearly $** billion of Canadian imports and takes effect within ** days, with no USMCA exemption or transition period. TexPro data shows that US textile imports from Canada across Harmonized System (HS) Chapters **–** reached $***.* million in Q* ****, equivalent to an annualised pace of about $*.* billion. Trade had already weakened before the tariff, with cotton (HS **) imports down more than ** per cent year on year, man-made staple fibres (HS **) nearly ** per cent, and knitted fabrics (HS **) over ** per cent. Reduced Canadian production could significantly weaken demand for US yarn and other textile inputs across the integrated North American supply chain.
Figure *: Direct tariff exposure. US textile imports from Canada were running at an annualised pace of approximately US$*.* billion in Q* ****. The highlighted Q* **** import flow represents the trade base subject to the additional ** per cent duty from August **.
The commercial impact extends beyond Canadian exporters to US textile suppliers. According to the National Council of Textile Organizations (NCTO), Mexico and Canada together account for $**.* billion, or ** per cent, of total US textile exports, while Canada alone imports roughly $*.* billion of US man-made fibre yarns and fabrics annually. In an interview with media, Bob Kirke, executive director of the Canadian Apparel Federation, said the ** per cent tariff would significantly reduce Canadian production and, consequently, the customer base for US textile companies. He also urged US textile suppliers to oppose the measure. His remarks highlight the integrated North American supply chain, where Canadian apparel manufacturers rely heavily on American yarns, threads, fabrics, and machinery, making weaker Canadian production a direct risk to US textile export demand.
