Tariffs hit raw wool trade, forcing Canadian producers to seek new markets
U.S. President Donald Trump’s administration has imposed a 50 % duty on greasy wool imports and a number of finished wool products, creating a cascade of extra costs for Canadian farmers, artisans and small retailers. The levies apply to the raw, unwashed fleece that is shipped south for scouring and further processing. Canada’s limited domestic processing capacity means many producers rely on foreign mills, and the new tariffs have made that arrangement economically untenable.
A poll indicates that more than half of Canadians back rejecting the proposed trade deal and imposing counter‑measures, reflecting widespread frustration. As a result, several Canadian wool growers are diverting their raw fleece to markets such as China and the Czech Republic to avoid the U.S. duties. Matthew Rowe, chair of the Canadian Wool Council, described the shift as “an unfortunate rupture in a long‑standing trading relationship” at a time when wool prices are already on the rise. “If you’re relying on cross‑border supply chains to get something produced, it just doesn’t make economic sense any more with these tariffs,” he said.
Small businesses and artisans face mounting costs and tough choices
Judy Enright Smith, owner of the Wabi Sabi yarn shop in Ottawa, says she is running out of patience with her American supplier. The supplier’s representative once visited wearing an “Elbows Up” T‑shirt, a symbol that quickly turned a commercial interaction into a personal affront. “At first, it was business. Now, it’s personal,” she recalled.
Enright Smith no longer feels morally obliged to stock U.S. labels, despite their popularity among some customers. She is now looking to European sources and Canadian producers to fill the gap. Her American supplier’s recent message warned Canadian clients that ceasing business would “hurt the little guy,” framing the tariff dispute as a blame game. Enright Smith reads this as a self‑serving attempt to shift responsibility for the damage caused by Trump’s aggressive trade policy.
She added that this year, when the U.S. supplier reaches out to make a sale, she will say no. “I don’t mind losing American customers because they basically voted for the guy,” she said of the president.
A rare Canadian mill thrives locally, but still feels the pinch
One notable exception to the industry’s struggles is New Brunswick’s Briggs and Little, a wool‑processing mill that has operated since 1857. The company sources its fleece from a co‑operative in Carleton Place, Ontario, and carries out the entire manufacturing process on site, thereby sidestepping many of the U.S. tariffs.
However, the historic mill is not entirely insulated from the trade turmoil. Office manager Leah Little explained that the facility uses some U.S.-made parts and materials that are now subject to duties. “We do hope this mess is resolved before we need to replace any of our machinery parts that are not available in Canada,” she said.
Rowe emphasised that Briggs and Little remains the exception rather than the rule for Canadian wool producers. It is described as a “great option” for knitters seeking locally sourced yarn, yet its success underscores the broader challenges faced by the sector.
Industry leaders call for a reimagined, self‑sustaining wool sector
Anna Hunter, a shepherd and wool‑mill owner at Long Way Homestead in Ste. Genevieve, Manitoba, has been rethinking the future of Canada’s wool industry for some time. Author of The True Cost of Wool, Hunter stopped shipping to the United States last year after President Trump eliminated the de minimis exemption that had allowed duty‑free imports under US$800.
That decision came on the heels of the COVID‑19 pandemic, which had already disrupted global supply chains and left Canadian yarn producers struggling to find markets beyond the U.S. “All of a sudden, Canadian wool wasn’t moving anywhere than the United States. It was sitting in warehouses and because there was no resilience in how we sold, or where we sold our wool, there was no market,” she said.
When the additional 50 % tariff was added to the list of duties, Hunter questioned how many more setbacks the sector could absorb. “How many more hits will Canadian wool have to take before we start talking about creating a new system?” she asked.
A key obstacle for the industry is the limited mill capacity across the country. Hunter currently processes roughly 5,000 lb of wool annually, a fraction of the fleece she collects from her flock. She envisions a network of decentralised regional processing facilities designed to handle different wool varieties and support a robust domestic textile industry.
Hunter believes that decoupling Canadian wool from the United States will require both government and consumers to view wool not merely as a by‑product of sheep farming, but as a valuable commodity worthy of investment. “We’re going to have to really wrestle with how our clothing system has become completely disconnected from agriculture and from our own economy,” she said.
She also urged Canadian knitters to adopt a habit of checking labels and buying local. “We need to start thinking of wool as something that can thrive within our own borders,” she added.
Why it Matters
The tariff regime imposed by the Trump administration has thrust Canada’s wool sector into a period of profound uncertainty, exposing the fragility of decades‑long trade relationships. For a country that prides itself on sustainable agriculture and craftsmanship, the ability to retain and grow a domestic wool industry is not just an economic issue—it is a matter of cultural identity and food‑security‑adjacent resilience. As producers scramble to find new markets, diversify processing, and rebuild supply chains, the broader lesson is clear: over‑reliance on a single neighbour for critical raw materials leaves any nation vulnerable. The fallout from these tariffs will ripple beyond the fleece‑filled workshops of Ontario and Manitoba, influencing consumer prices, local employment, and Canada’s strategic position in North American trade. Addressing the challenges now will determine whether Canadian wool can emerge stronger, more self‑sufficient, and a genuine pillar of the nation’s agricultural and textile landscape.
