The Canada Brief

Economy · 18 d ago

Sheep grazing beside a country road

Robert Taylor from Stirling, ON, Canada · CC BY 2.0 · Wikimedia Commons

Cut off from the US by tariffs, Canada's wool industry looks overseas

US tariff on raw Canadian wool

50 %

In August, the United States began charging 50 per cent tariffs on raw wool from Canada and some finished wool products, cutting producers off from US buyers.

Where producers can turn

  • The United Kingdom
  • The Czech Republic
  • China

Canada has no large-scale plants to wash raw wool and has long shipped it south for processing. Big producers now look to other countries to avoid the tariffs.

"Canada has high-quality products, like our Canadian wool, to offer the world, and we want to help get more of them into global markets."

— Heath MacDonald, minister of agriculture and agri-food

The missing first step

scouring

Ottawa is giving the Canadian Wool Council nearly $160,000 over two years for export promotion. The council's chair, Matthew Rowe, wants major investment in scouring, the washing that starts all wool processing.