Heavy pressure from US tariffs! Canadian company Sheertex forced to lay off 40% of its workforce
Due to the upcoming tariffs imposed by the United States on Canadian goods, the Montreal based manufacturer of high-strength and durable pantyhose has had to temporarily lay off 40% of its employees. The company employed about 350 employees before the layoffs.
According to the Canadian News Agency, Katherine Homuth, CEO of Sheertex, stated that the company is currently facing significant financial uncertainty, partly due to delays in the final stage of the latest round of financing.
She also attributed some of the responsibility to the upcoming tariff adjustments by the United States. 85% of Sheertex's sales come from the US market, so tariffs will directly affect the company's revenue.
Image source: Sheertex Facebook photo
In addition to the upcoming 25% tariff in the United States, the cancellation of the 'de minimas exemption' will also have a negative impact on Sheertex. Previously, the policy allowed all direct sales orders below $800 to be tax-free.
If the United States cancels the exemption, Sheertex's products will face a 16% import tariff in addition to the 25% tariff, resulting in a significant increase in the overall tax rate.
Homuth said that although the United States announced a one month suspension of tariffs, it is far from enough for her company to alleviate the current economic pressure.
Source link:
https://ca.finance.yahoo.com/news/sheertex-temporarily-lays-off-40-170429084.html