Dartmouth, Nova Scotia-based outerwear maker fairechild has paused U.S. shipments, a setback for a company whose CEO told Global News that American customers represent about half its customer base.
CEO and founder Tabitha Osler told Global News that fairechild absorbed what she estimated was probably at least $10,000 in brokerage chargebacks over two to three months. The currency was not specified. She said the company stopped U.S. shipments in August; its website lists U.S. delivery as paused. Osler said fairechild had shipped according to its understanding of the applicable rules and is now working to collect duties more clearly and establish preferential origin.
Separately, the White House set 12:01 a.m. ET on Aug. 22, 2026, as the start time for Section 338 duties on certain Canadian goods. The Trade Commissioner Service of Canada says the 50% Section 338 tariffs cover certain textiles and apparel, and CUSMA eligibility does not exempt covered goods from those additional duties. The White House said the policy was intended to counter what it described as discriminatory Canadian treatment of U.S. exports in the auto, alcohol and dairy sectors. Osler did not identify the chargebacks as payments under the Section 338 duties.
Osler told Global News fairechild previously used the United States to route goods to other markets, helping manage costs. She said the company now pays more to send products to Europe. Global News reported that production has slowed and that fairechild is seeking Canadian suppliers and trying to build its customer base in Canada and other markets. The company’s website says orders ship from its Nova Scotia studio and its adult collection is made locally in Canada.
Bob Kirke, executive director of the Canadian Apparel Federation, told Global News that duty burdens can factor into manufacturers’ location decisions, citing China, Portugal and Italy as places with lower rates on many goods. Osler summed up the effort to keep the company operating: “But yeah, let’s keep us alive.”
