Quebec companies announce layoffs ahead of Trump tariffs
The U.S. is Quebec's top trading partner, with most manufacturers in the province trading and selling to American companies and consumers.
Montreal-based tights manufacturer Sheertex (SRTX), now a publicly traded company, announced on LinkedIn Wednesday morning it would be temporarily laying off 40 per cent of its 350 employees in preparation for the tariffs.
Katherine Homuth, the company's CEO and founder, wrote that although the U.S. tariffs on Canadian goods are planned at 25 per cent, SRTX is facing 41 per cent tariffs across its U.S. shipments due to additional duty fees it faces.
"We are in a worst case scenario," Homuth wrote, explaining that the company's tights cannot be considered to be made in Canada because SRTX imports more than nine per cent of its raw materials.
The company is using the 30-day delay on tariffs — announced after a phone call between Prime Minister Justin Trudeau and U.S. President Donald Trump Monday — to move some of its inventory to the U.S., where Sheertex does 85 per cent of its sales.
The layoffs are temporary but come at a time when SRTX has been fundraising additional capital to stay afloat.
"If you believe in the importance of making things here, in building not just brands, but the factories and technologies that power them, now is the time to stand with manufacturers," Homuth wrote.
Another up and coming Quebec manufacturer, furniture-maker South Shore, also announced on Wednesday that it would be laying off 115 employees.
In a news release, the company said 70 per cent of its sales are conducted in the U.S. and that it had seen those plummet in the face of Trump's tariff threats.
It said the threats had prompted the company's American buyers to increase their imports of Asian products. The layoffs include 97 jobs at South Shore's head office plant in Sainte-Croix, a town 200 kilometres northeast of Montreal on the St. Lawrence River. Another 18 employees at South Shore's Coaticook plant in the Eastern Townships will be affected.
"South Shore is calling on consumers to turn massively to Canadian products to collectively face this unprecedented situation," the news release said.
The company, which was founded in 1940, noted it had already survived several economic crises and that it intended to review its current business model.
Uniboard, a Laval-based wood products manufacturer, said Tuesday it would be temporarily closing five production lines at its plant in Sayabec in the Gaspésie region.
Fifteen employees will lose their jobs, which CEO James Hogg said represented less than 10 per cent of the company's roughly 400-employee workforce.
He attributed the layoffs to the uncertainty caused by U.S. tariff threats.
"We don't know exactly what the customer reactions are going to be. Are they going to cancel orders? Are they going to put things on hold? Those are all [reactions] we've seen since Sunday," Hogg said.
Hogg said he hopes the company will be able to resume its normal operations if Trump drops his tariffs idea.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Star
an hour ago
- Toronto Star
Faircourt Asset Management Inc. Announces July Distribution
Toronto, July 25, 2025 (GLOBE NEWSWIRE) — Faircourt Asset Management Inc., as Manager of the Faircourt Fund (CBOE:FGX), is pleased to announce the monthly distribution payable on the Shares of the below listed Fund. Faircourt Asset Management Inc. is the Investment Advisor for Faircourt Gold Income Corp. This press release is not for distribution in the United States or over United States wire services. ARTICLE CONTINUES BELOW For further information on the Faircourt Funds, please visit s or please contact 1-800-831-0304. You will usually pay brokerage fees to your dealer if you purchase or sell Shares of the Fund on the CBOE Canada Exchange or other alternative Canadian trading system (an 'exchange'). If the Shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying Shares of the Fund and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in the public filings available at Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Canada News.Net
an hour ago
- Canada News.Net
Trump hails Japan trade pact as job-creating breakthrough
WASHINGTON, D.C.: This week, President Donald Trump unveiled a new trade framework with Japan, announcing a 15 percent tariff on goods imported from the country—a significant reduction from the 25 percent rate he had previously warned would take effect on August 1. Trump hailed the deal as a historic win for the U.S. economy, writing on Truth Social, "This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it." He also emphasized continued strong ties between the two nations, saying, "The United States will continue to always have a great relationship with the country of Japan." According to the president, Japan has agreed to invest US$550 billion into the United States economy "at my direction" and to open its market to more American products, specifically automobiles and rice. This new agreement marks a strategic pivot in Trump's tariff campaign, replacing an earlier, more aggressive stance with a framework he claims will enhance trade fairness and boost domestic job creation. Japanese Prime Minister Shigeru Ishiba responded early on June 23, stating that the agreement would prove mutually beneficial and foster greater cooperation between Tokyo and Washington. The acknowledgment signals a rare moment of harmony amid months of tariff escalations and trade tensions. While Trump's initial round of tariffs, introduced in early April, rattled global markets and triggered fears of a slowdown, those concerns appear to have eased for now. Still, the president's latest social media statement left some questions unanswered—most notably, whether the 25 percent tariff on Japanese-built automobiles remains in effect or has been folded into the new 15 percent rate. The Japan agreement fits within Trump's larger strategy of framing tariffs not as punitive but as economically transformative. His administration argues that revenues generated from tariffs will help reduce the U.S. budget deficit, incentivize companies to shift manufacturing to American soil, and address chronic trade imbalances. Officials believe this will result in a stronger, more self-reliant industrial base. However, the effectiveness of this approach remains contested. Tariffs are still causing deep uncertainty in business circles, where companies fear rising costs. A stark example came on a day earlier, when General Motors reported a 35 percent drop in net income for the second quarter. The company blamed the slump partly on tariff pressures and warned of further hits to its business in the near future. Its stock took a sharp downturn following the announcement, underlining the volatility that continues to shadow Trump's trade agenda. As the August 1 deadline nears for the imposition of new tariffs outlined in letters sent to world leaders, Trump has expanded his strategy. Alongside the Japan deal, he also announced a new trade framework with the Philippines, imposing a 19 percent tariff on Filipino goods, while ensuring American exports to the country would remain untaxed. Similarly, he reaffirmed an identical 19 percent tariff on goods imported from Indonesia. Trade data shows the U.S. had a $69.4 billion trade imbalance with Japan last year, while the imbalance stood at $17.9 billion with Indonesia and $4.9 billion with the Philippines. These figures reflect how the U.S. imports significantly more from these nations than it exports to them. Both Indonesia and the Philippines, being less affluent economies, could be more vulnerable to the impact of these tariffs. Amid these moves, the European Union is also under pressure. Trump had sent a letter earlier in the month, threatening all 27 EU member states with 30 percent tariffs on their exports, effective August 1, if no agreement is reached. Meanwhile, separate negotiations with China remain underway. The current round of talks is scheduled to continue until August 12, while a baseline 30 percent tariff remains in effect on Chinese goods. Treasury Secretary Scott Bessent announced he would travel to Stockholm on July 28 and 29 to meet with Chinese counterparts. As Trump escalates his multi-front trade strategy, the coming weeks will be pivotal in determining whether these new agreements can hold, and whether the bold predictions of job growth and economic revival will come to pass—or give way to rising costs and deeper global uncertainty.
Global News
2 hours ago
- Global News
New rail spur line aims to connect Coaldale to global markets
Last month, a Dutch company officially started operating at their first Canadian facility. NewCold's cold storage facility in Coaldale, Alta., was a $222 million project that has already added dozens of full-time positions, with management saying the employment ceiling hasn't yet been reached. However, exports out of the 323,000-square-foot facility aren't moving at the level the new building is capable of. To help move things along, the Government of Alberta announced on Friday its support of a new rail spur running through the heart of Coaldale's industrial park. A rail spur is a short offshoot of a main line, and in this case the spur will connect with the Canadian Pacific Kansas City running through town. 'This project will provide us with a connection to the NewCold storage facility, which will allow local producers to transport southern Alberta grown and manufactured goods to a global consumer base in the agri-food processing sector,' said Devin Dreeshen, Alberta's minister of transportation and economic corridors. Story continues below advertisement In total, the Alberta government is spending $3.475 million via a grant through the Strategic Transportation Infrastructure Program. 'Coaldale is a growing hub for agri-food and industry in southern Alberta. By investing in key infrastructure like this rail extension, we're helping unlock the region's full economic potential and positioning Coaldale as a driver of long-term growth,' said Dreeshen. Despite being a small town, Coaldale is situated at the heart of the agri-food corridor on Highway 3. Combining its location with a willingness to expand the agricultural industry and government support, Coaldale's mayor is declaring a bright future for his town. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Coaldale is open for business and we mean it,' said Jack Van Rijn, mayor of Coaldale. In fact, he says this is a true game-changer for the southern Alberta community. 'This project represents one of the most significant industrial infrastructure investments in Coaldale's history.' The NewCold facility isn't the only major agriculture investment in the region in recent years, either. In 2023, McCain announced a $600 million investment to double its potato operation just outside of town. 1:43 Coaldale McCain Foods plant looks to add 260 hires to workforce 'If you build it they will come,' said Grant Hunter, Alberta's associate minister of water. Story continues below advertisement He, like Van Rijn, says the region has a strong economic future. 'I think it's just the beginning. I've been saying this for six years, I believe that southern Alberta is going to be some of the best real estate investment in Canada.' Hunter says the government is serious about making an impact in the area. 'This partnership between the province, Town of Coaldale and private industry is exactly the kind of collaboration we need to drive long-term growth, support job creation and help establish southern Alberta as a leading centre for agri-food production and efficient supply chain distribution.' NewCold's area site manager, Derek Bedke, agrees that the area is ripe for business. 'When you're working with local governments and provincial governments that allow you to operate quickly, it really facilitates the progress and it makes it a very easy decision to partner with towns like Coaldale and provinces like Alberta,' said Bedke. That quick work is exactly what Van Rijn says he is happy to see. 'From the time that we shook hands on the deal moving forward, they had shovels in the ground less than a year later, so it's just a testament that southern Alberta, the Town of Coaldale and Lethbridge County is open for business.' Story continues below advertisement The rail spur project will have a total estimated cost of $8 million, with the town of Coaldale and NewCold picking up what the grant doesn't cover.
