The Canadian Wool Council is warning that the United States' decision to impose 50% tariffs on selected Canadian goods, including wool products, could place additional pressure on an already vulnerable North American textile industry.
The tariffs followed a breakdown in trade negotiations between the Canadian and U.S. governments. Matthew J. Rowe, Chairman of the Canadian Wool Council, said the latest escalation threatens the progress made by businesses operating across the border.
"These new tariffs will only hurt the North American wool industry and damage the fragile gains we've made.
This is not the first time our industry has been caught in the crossfire of this trade dispute, and each escalation cuts deeper. What began as a 25% tariff in early 2025 has now doubled, striking at the heart of a textile trade relationship that predates both of our nations."
According to the council, the Canadian and American wool sectors are closely connected, with products and materials frequently crossing the border several times during production.
The trade relationship includes raw wool, yarns, knitwear, felts, sweaters, blankets, upholstery, carpets, suits and toques.
The organisation said the new tariffs could drive up prices, disrupt supply chains and potentially push Canadian wool products out of the U.S. market. Farmers, sheep producers and textile workers could also face greater financial pressure.
The council expressed support for Canadian industry and called on both governments to return to negotiations to prevent further economic damage.