Your Closet Was on the Ballot. Clothing Tariffs Aren't Going Anywhere Yet.

The midterms were a referendum on prices, and your closet was on the ballot. In the NBC News exit poll, 66% of voters said Trump's tariffs had hurt the national economy, against 21% who said they helped, and 79% said inflation had caused them severe or moderate hardship, according to NBC News. Clothes are one of the places shoppers feel it. US apparel prices rose 3.4% over the year to September, per the Bureau of Labor Statistics.

Voters made their point. Their new Congress cannot easily act on it, and Canadian fashion brands are learning that the hard way.

What Tariffs Are on Clothes Right Now?

Fewer than in 2025, but not by much. The Supreme Court struck down Trump's emergency "Liberation Day" tariffs in February. In July the administration replaced them with Section 301 duties tied to forced labor, at 10% for a list of countries that includes Bangladesh, Cambodia, India, Pakistan, Mexico and Canada, and 12.5% for most other trading partners, according to the US Trade Representative. That covers the countries that make most of the world's clothes.

Critics call it the same tariff with a new label. The new duties apply to the top 60 US trading partners, covering 99.4% of US imports, the BBC reported. UC San Diego's Caroline Freund said the move is "not about forced labour" and that Trump is "looking for a legal reason to put the tariffs in."

Clothes were already among the most taxed goods entering the US. American apparel imports faced an average effective tariff of 24.6% in 2025, and the footwear rate nearly doubled to 23.6%, according to the American Apparel and Footwear Association.

Who Got the Tariff Refunds, Shoppers or Brands?

Brands. When the Supreme Court ruling forced refunds of the emergency tariffs, the money went back to the companies that paid them at the border. Lululemon booked US$134.5 million in tariff refunds in its second quarter, which added 5.6 percentage points to its gross margin, in its earnings release. Aritzia recognized about $97.4 million in refunds, according to its second-quarter results.

No law requires those refunds to show up as lower prices on the rack. Shoppers who paid more during the tariff months are not getting a cheque.

How Are Canadian Fashion Brands Doing in the US?

It depends on the brand. Vancouver's Aritzia is booming south of the border. Its US net revenue jumped 60.3% to $779.4 million in the quarter, now two-thirds of its sales, while Canadian revenue grew 19.8%. "We sustained exceptional momentum in the second quarter," said CEO Jennifer Wong.

Lululemon is going the other way. Its Americas revenue fell 8% in the second quarter, and it now expects full-year revenue to decline 5% to 7%. Interim co-CEO Meghan Frank called it "a prudent approach with our revised full-year outlook."

Canada Goose is planning for a new tariff hit. In results released November 5, the company said US tariffs "announced on July 20, 2026 and effective as of August 22, 2026" will cut its adjusted operating margin by about one percentage point this fiscal year, in its quarterly release. Those are the Section 338 tariffs aimed at Canada. CEO Dani Reiss said the company is "confident in the strength of our brand" heading into its biggest season.

Can a Democratic Congress Bring Clothing Prices Down?

Not before the holidays. The new Congress is not seated until January, and the current tariffs rest on trade powers that Congress already handed to the president. Overturning a veto would take two-thirds of both chambers, which Democrats do not have even with at least 54 Senate seats. Hearings, pressure votes and court challenges are the realistic tools.

Meanwhile, shoppers are still planning to spend. The National Retail Federation forecasts US holiday sales will grow 4.2% to US$1.013 trillion, in its October forecast. CEO Matthew Shay said consumers "will prioritize the holiday season even as they remain mindful of their budgets."

Is Your Cross-Border Haul Now Taxed on Both Sides?

Some of it is. Canada's counter-tariffs, in force since September 8, put a 50% duty on a long list of US-made clothing, including cotton T-shirts, sweaters and men's and women's coats, according to the federal counter-tariff list. The duty applies to where a product was made, not where you bought it, so a US brand's shirt made in Vietnam is not affected.

Online orders have their own thresholds. Courier shipments from the US or Mexico come in duty and tax free up to $40, and duty free but taxed up to $150, according to the Canada Border Services Agency. From anywhere else, the duty and tax free limit is $20.

So the fashion takeaway from the midterms is patience, not relief. American voters rejected the tariffs, but the people who set them still hold the pen until January 2029. Until then, Canadian shoppers should check the label for where things are made, and Canadian brands will keep living with whatever Washington decides next.