Female founders rally support online as layoffs and tariff uncertainty hit hard
Women Leaders10.02.2025
It’s been a wild week for businesses trying to keep their footing, with the threat of U.S. tariffs putting everyone on edge. Even though the tariffs are on hold (for now), the uncertainty is already taking a serious toll.
We saw this play out in real-time when Sheertex’s CEO, Katherine Homuth, announced on her LinkedIn that she was temporarily laying off 40 per cent of her staff due to the trade conflict.
“Yesterday, we made the incredibly tough decision to temporarily lay off part of the SRTX team — not because of demand, but because investors are hesitant to back Canadian manufacturing and because impending U.S. tariffs on Canadian-made goods have left us fighting to secure Sheertex’s future,” she wrote.
“We built a world-class factory in Montreal, and we should be able to rely on Canadian retailers to grow. But we can’t.”
Homuth, who started the hosiery company in 2017, pointed out that 85 per cent of Sheertex’s business comes from the U.S. – a fact she wants to change.
Like many discussions nationwide, Homuth stressed the need for better cooperation between Canadian retailers, directly calling out retail giants like Shoppers Drug Mart, Sephora and Rexall for not playing ball.
“Instead of stocking a made-in-Canada innovation, they fill their shelves with foreign-made, disposable tights that fall apart in days,” she wrote.
“This isn’t just about Sheertex. This is about whether Canada backs its own businesses or keeps outsourcing its future.”
Higher prices, lower quality?
It’s not just Sheertex speaking out. Female business leaders everywhere are feeling the pressure and voicing their concerns for their fellow entrepreneurs, with several of them taking to social media to lay out the stark reality.
Canadian beauty leaders Connie Lo and Laura Thompson, co-founders of Three Ships Beauty, released a statement speaking out on the impact the tariff threat is having on Canadian-made products.
With a predominantly Canadian team and all but two products manufactured in Toronto, Lo and Thompson emphasized the challenges Canadian brands will face in maintaining affordable pricing while upholding quality and sustainability standards.
“If you’ve felt overwhelmed or anxious about yet another economic challenge, you’re not alone,” they shared in a personal statement. “As entrepreneurs who built Three Ships from the ground up in Canada, we understand firsthand the dedication and grit it takes to sustain a small business.
“Now, more than ever, supporting small businesses — whether by shopping indie, spreading the word, or simply showing up for each other — matters. There’s a saying that when you buy from a small business, someone somewhere does a little happy dance. We know that’s 100 per cent true.”
It’s a sentiment thighsociety CEO and Founder Marnie Rabinovitch Consky shared when she took to social media to also outline the complexity that direct-to-consumer business owners like her are facing.
On top of the proposed 25 per cent tariff, Rabinovitch Consky detailed how changes to the “de minimis” rule – which allowed American customers to order up to $800 of product duty-free from anywhere in the world – would result in her company paying duties as high as 40 per cent.
“I know we can count on our Canadian customers to rally behind our homegrown Canadian brand like they have since 2009, but I don’t think that’ll be enough,” she wrote.
“If nothing else, we’re not alone. So many incredible Canadian brands are navigating these same challenges, and together, we’ll do what we can to adapt, drive change, and weather whatever comes next.”
A glimmer of hope amid uncertainty
While the challenges of looming economic uncertainty aren’t going away anytime soon, there’s been a silver lining: the call for support is working.
Brands across the board are sharing lists of other Canadian-owned businesses, tagging and calling out other entrepreneurs to help spread the word.
And, in the wake of Sheertex’s layoffs, major brands have stepped up. Homuth shared an update that several brands were starting conversations, and WestJet, for example, placed an order for their team.
It’s a reminder that real impact is possible when businesses rally around each other.
“Every comment, every share, every tag helps demonstrate the real demand for Canadian-made, sustainable products in our stores,” she wrote. “Together, we can work toward building a stronger, more independent Canadian manufacturing sector that isn’t overly dependent on a single market.”
There’s still a long road ahead, and no one knows what’s coming next. But if this past week has shown us anything, it’s that businesses aren’t backing down without a fight.
