Sheertex Faces Major Workforce Cuts Amid Looming U.S. Tariffs

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Montreal-based Sheertex, renowned for its durable pantyhose brand, has announced the temporary layoff of 40% of its workforce, amounting to approximately 140 employees.

The decision comes as the company braces for significant financial challenges tied to impending U.S. tariffs and delays in securing additional funding.

Impact of U.S. Tariffs

The layoffs were announced by CEO Katherine Homuth following recent executive orders imposing a 25% tariff on Canadian imports.

This is compounded by the removal of the “de minimis” exemption, which previously allowed duty-free shipping for direct-to-consumer orders under $800.

As a result, Sheertex will face a total duty of 41% on its U.S. shipments—16% from existing duties and 25% from the new tariff—despite manufacturing all products in Canada.

The company does not qualify as “Made in Canada” under the United States-Mexico-Canada Agreement (USMCA) because over 9% of its raw materials are imported.

Financial Uncertainty

Homuth cited delays in closing a key fundraising round as an additional factor contributing to the layoffs.

With 85% of Sheertex’s sales occurring in the U.S., the combined financial pressures have created a challenging scenario. The temporary layoffs, expected to last up to six months, aim to stabilize operations while maintaining production and sales at forecasted levels for 2025.

Broader Implications

Sheertex is not alone in facing these challenges. Other Quebec-based manufacturers have also announced layoffs due to tariff threats and declining U.S. sales.

For instance, South Shore Furniture is cutting 115 jobs as American buyers shift toward Asian imports.Despite these setbacks, Homuth reaffirmed Sheertex’s commitment to serving customers and continuing its long-term growth plans.

The company recently secured $70 million CAD in convertible note financing to expand its vertically integrated manufacturing operations in Quebec.

As the U.S. tariffs loom closer, Canadian manufacturers like Sheertex are urging policymakers and consumers to support domestic production during this turbulent period.

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