A second Quebec manufacturer has announced mass layoffs this week amid U.S. President Donald Trump’s threat of tariffs on Canadian exports.
Montreal-based tights manufacturer Sheertex (SRTX) founder and CEO Katherine Homuth announced on LinkedIn on Wednesday that the company has placed approximately 40 per cent of its 350 employees on temporary layoff. This amounts to about 140 people losing their jobs.
“This decision was not made lightly. With 85 per cent of our sales in the U.S., and tens of millions invested in our Canadian factory, the impending U.S. tariff changes and delays in closing the final portion of our fundraise have led to tremendous financial uncertainty,” Homuth wrote.
In an email sent to Global News, Homuth said the financial impact of the tariffs has already started, even before official implementation.
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She pointed to the “immediate cost increases due to supply chain shifts, the urgent need to move inventory before tariffs hit, the impact on investment and cash flow,” and lastly, how the tariff-related cost burden is “unmanageable without action.”
The company says it is rushing to move inventory across the border in the next 30 days before the potential new 25 per cent tariff. This means it is paying the current 16 per cent duty upfront on unsold inventory, which it says is creating an immediate cash flow strain.
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It also says its fundraising and commercial agreements have been disrupted.
“Investors and partners are adjusting their risk assessments, which slows down funding discussions,” Homuth said, adding that the remaining $23 million on its previously secured raise has now been delayed.
The Sheertex founder said the move isn’t about waiting for the implementation of the tariffs, but about responding to the real and immediate financial impacts already in motion.
“We are acting now to survive what’s coming, rather than reacting too late when fewer options remain.”
This comes on the heels of Quebec furniture manufacturer, South Shore Furniture, announcing it had laid off 115 people in the province, also due to the threat of U.S. tariffs on Canadian goods, which are now expected to come into effect in a month.
The province has been seeing a wave of layoffs the past few weeks. On Jan. 22, U.S. e-commerce giant Amazon said it will close all seven of its facilities in Quebec. The company said it would be laying off about 2,000 permanent and temporary workers — a number the Ministry of Labour has since confirmed will actually exceed 4,500 after including delivery service partners.
Global News has reached out to South Shore Furniture for comment.
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