Montreal clothing retailers split on Trump tariffs as 50% duty hits U.S. sales

The Trump administration's 50 percent tariff on Canadian clothing is fracturing Montreal's retail landscape, punishing businesses that export south while benefiting makers who stay local.

Atelier b, a sustainable clothing store, says the tariff is simply unworkable. "It's 10 percent of our sales revenue that we lose because of that. Ten percent was in the States," co-owner Anne-Marie Laflamme said. "A 50 percent tariff is way too high for a company with small margins and way too high for customers to afford."

But other Montreal clothing makers are seeing a different picture. Andrew Baghdi, owner of Atelier Damask, reports a 10 to 15 percent increase in local business since trade tensions began. "We have a lot of positive impact because of the sense of local unity," Baghdi said. "People want to move away from producing for the U.S. or even producing in the U.S., and they're coming more locally."

Alexa Cecchetto of Former Director says her customer base remains primarily Canadian anyway. "In terms of my loyal customer base, it's mainly Canada," she said. "And I still do get orders from the United States. I think politics is politics. But if you like something, I think you just buy it online."

The tariffs came after the collapse of Canada-U.S. trade negotiations over the weekend. Quebec was at the centre of talks, with American negotiators raising objections to French-language content on streaming platforms and French-language labelling rules—concerns Prime Minister Mark Carney rejected as non-negotiable. On social media, Trump contradicted Carney, stating he would never interfere with French language and that he "loves French Canadians." The Montreal business owners questioned the sincerity of his words, citing his track record.