The Hudson’s Bay Company was once known as Canada’s largest department-store chain. Unfortunately, that’s no longer the case: After 355 years, the company is bowing out. Despite its complex history—marked by the shadow of colonialism and the oppression of Indigenous peoples, notably through the fur trade—the retailer has been an integral part of Canada’s fashion landscape and served as a showcase for many local brands. While its imminent closure doesn’t come as a huge surprise—most of its stores, stuck in the past, failed to evolve and adapt to the increasingly demanding expectations of customers—it does signal the end of an era in a particularly challenging economic context.

Once favoured, our trade relations with the United States have now been hit by an uncertain and chaotic trade war with disastrous consequences. Does all of this herald the beginning of a recession in the fashion industry as purchasing power—weighed down by inflation and the threat of an economic crisis—declines across the country? We asked a handful of local brands, designers and business owners.

Last December, shoe and accessory brand Maguire announced the opening of a new location in Williamsburg, right in the heart of Brooklyn, New York. The decision had been made in the summer of 2024, months before the U.S. presidential election. At the time, it was hard to imagine a trade war with our closest ally. “Our Manhattan store was buzzing, our online sales from Brooklyn were strong too and an opportunity came up for an ideal space at an [unbeatable] price,” explains Myriam Maguire, one-half of the sister duo behind the label. “The current economic climate might require a bit more patience, but we remain confident: It’s a strategic location for long-term growth.” While the brand is determined to weather the storm, it’s also looking to fast-track some previously postponed projects—like launching in Europe—in order to diversify.

As for intimate-apparel brand Knix, the company decided to move its annual sale of leak-proof underwear up by a month, allowing customers to take advantage of the best possible discounts before potential new tariffs that could affect production costs come into effect. “Tariff news is changing by the moment, and with so much uncertainty, we’re choosing to focus on what we can control,” explains Joanna Griffiths, founder of the Toronto-based brand. At retailer Absolutely Fabrics, the impact of increased tariffs is already being felt. “It has slowed down online ordering a bit while people try to figure out how it impacts them,” says Kaelen Haworth, founder and creative director of the boutique, which has a physical location in the heart of Toronto. Of the niche brands featured in-store, several—such as Proenza Schouler, Grace Ling, Christopher John Rogers and Zankov—are from New York. Given the current boycott of American brands, does Haworth plan to change strategy and drop these labels for the time being? “I don’t,” she states firmly. “We’ve worked really hard to bring in the right mix of designers, and they have become very important partnerships. We are not going to cut them loose. We’re going to ride out the wave as partners.” She warns that prices will likely rise slightly, but she’s doing everything she can to avoid major increases. As the head of a small business, she has less leeway than a large retailer, but she’s counting on the DNA of Absolutely Fabrics—offering bold pieces and exceptional creations since 2023—to stay on course. “We’re trying not to be too reactive in the moment and jeopardize our relationships, our ethos and our vision for the future.”

“As a brand that’s proudly designed and manufactured in Canada, we don’t face the same challenges as those importing goods from overseas,” says designer Eliza Faulkner, founder of her eponymous label, which creates most of its garments in Montreal or elsewhere in Canada. That’s not the case for Knix, which manufactures its underwear and swimwear overseas for a very simple reason: “The infrastructure for full-scale manufacturing isn’t yet available locally,” says Griffiths.

This lack of resources affects the fashion industry at all levels in Canada. Montreal-based leather-goods brand Bouquet, founded by Véronique Orban de Xivry, is forced to source its leather and hardware elsewhere, often south of the border. “Here, we have distributors for unsold leather with limited stock, but I’m looking for a [material] that’s high quality and available for reordering,” she says, noting that she often turns to American suppliers who offer splitting services for European leathers. “There are no tanneries in Canada apart from small artisanal operations. And you won’t find high-end hardware here either.” The designer understands the logic of imposing tariffs to support the local economy but finds it frustrating when they apply to products that simply can’t be made in Canada.

Is the current wave of patriotism, which emphasizes buying local, being felt in the fashion industry? It’s still too early to tell, but awareness is growing. “[It’s] wonderful to see, but as we all know, the economy is far from thriving and consumers tend to spend less—especially on higher-priced items, which are often the ones made in Canada,” explains Mary Young, whose lingerie brand has been 100 percent Canadian since its launch in 2014. Lately, she’s seen a drop in sales, which she attributes to inflation.

That’s also the case for milliner Samantha-Tara Mainville, founder and owner of Heirloom Hats. “[It’s] related to the current uncertainty,” she says. “I was planning to start reaching out to U.S. retailers, but I’ve put that on hold for now.” A year ago, Mainville decided to close her physical store in Montreal following a burnout—a tough but necessary choice. “The biggest challenge is finding a healthy balance between my professional life and my personal life,” says the designer, who continues to sell her creations through stockists and her online shop. “My business is closely tied to who I am, and I love what I do, but that can sometimes make it hard to recognize when it’s time to slow down.”

Her words echo those of Young, who decided to pause her business at the end of April for an indefinite period. In her case, it wasn’t so much the tough economic climate but a personal need to reconnect with herself beyond the demands of running a company. For many proprietors of local brands, the real challenge is finding their place and growing without sacrificing their mental health. “Amid the everyday struggles, you sometimes wonder why you do all this, and then a little sign shows up: a message from a customer eagerly awaiting a style, a surprise visit to the store, a glowing review online or someone proudly telling us they own multiple pairs,” says Maguire. “It’s those small gestures that make all the difference.”

By shopping from a Canadian brand, you’re supporting an entire ecosystem—designers, pattern makers, seamstresses, manufacturers, sales staff, photographers and models. “It’s a tangible way to invest in our economic and cultural fabric,” says Mainville. If placing an order isn’t financially possible, says Young, there are still ways to support local brands: follow them on social media, subscribe to their newsletters or just spread the word about them. “Your support keeps Canadian fashion alive, evolving and full of heart,” says Faulkner.

More than ever, our brands and designers need us—just as much as we need them.