Canadian manufacturer eyes U.S. as firms 'cannot hold off for too long anymore'

Summary

• Fine Cotton Factory Inc. is expanding into the U.S. to mitigate long-term risks from tariffs that previously caused U.S. sales to tumble by up to 50%.
• The company is shipping unfinished fabrics to U.S. contractors to reduce tariff exposure & plans to open a U.S. warehouse & begin production early next year.
• Executive Skip Kann states that uncertainty over the Canada-U.S. trade relationship will persist regardless of future tariff removal or new trade agreements.
• Experts warn that eroded trust in cross-border supply chains could drive manufacturers to make suboptimal investment decisions based on fear of future disruptions.
• While some manufacturers are seriously considering U.S. plants due to steep tariffs, Statistics Canada data shows Canadian direct investment in the U.S. remained slightly down at the end of 2025.
• Economists caution that aggregate data may not yet reflect a major shift, as other companies may eventually decide they cannot delay investment decisions any longer.