Aritzia, Canadian Tire, Lululemon among Canadian retailers shifting production outside China

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Aritzia, Canadian Tire, Lululemon among Canadian retailers shifting production outside China
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Shoppers come and go from a Canadian Tire store in Ottawa on Aug. 11, 2023.

While recent headlines have focused on returning U.S. president Donald Trump’s threatened tariffs against Canadian products, retailers in this country have also been considering the possible impact of the additional tariffs he’s threatened on goods coming from China.

The trend of companies shifting production outside China isn't new. Tensions between the U.S. and China have been escalating for years, and, for example, said it plans to reduce its goods made in China by 40 per cent, up from a previous target of 10 per cent.And just as the Canadian government has matched U.S.

Costs may have also played some role in the shift, said Bob Kirke, executive director with the Canadian Apparel Federation. As China has developed economically, "labour costs have increased," he said. "That's very straightforward.""As it relates to any type of trade escalation between U.S. and China and how that impacts us just from that standpoint alone, we're in a less position than we would have been this time last year," said Hicks in the fall.

Kirke, with the Canadian Apparel Federation, said the country is also extremely capable at manufacturing not just textiles but all the fiddly little pieces needed to make a garment, from zippers to linings to backings.

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