The Globe and Mail reports in its Thursday, April 10, edition that tariff pressures may compel Canadian and multinational apparel brands to increase prices for the goods they import into the United States. The Globe's Mariya Postelnyak and Susan Krashinsky Robertson write that these price hikes, however, could also affect the Canadian market. To maintain consistent prices across different markets and offset rising costs, some brands may raise their prices in Canada as well, say industry experts.
Many Canadian-owned and international clothing retailers, such as Lululemon, Aritzia and Groupe Dynamite, operate in both Canada and the U.S., with some relying on manufacturing in Asia.
Retailers that sell in U.S. markets will likely need to increase prices to cover rising costs, which include tariffs on raw materials and fees for hiring customs brokers. However, many global retailers strive to maintain price parity -- setting comparable prices for products regardless of where they are sold -- to sustain consistency and customer trust, as noted by Retail Strategy Group principal Liza Amlani. "You can't have products cost $20 more in the U.S. but leave it cheaper in Canada. That can't work," Ms. Amlani said.
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