By Grace Kim

A Michigan Republican lawmaker has filed legislation designed to shield the state's retailers and manufacturers from duties imposed on Canadian imports, a move that would directly affect softgoods buyers whose cross-border sourcing lines run through Ontario and Quebec.

The bill, introduced in the state House, would create a state-level mechanism for Michigan businesses to recoup tariff costs on Canadian-origin goods. WWD first reported the filing. The legislation reflects how statehouses are attempting to write around federal tariff policy as the USMCA framework absorbs repeated stress.

What supply chains does the bill reach?

Michigan's textile, apparel and footwear import pipeline runs heavily through the Detroit-Windsor and Port Huron-Sarnia crossings. Canada is a mid-tier source of US apparel imports, with annual shipments that include knitwear, technical outerwear and performance fabrics. The Michigan crossings handle a meaningful share of that volume.

The state's bill does not change federal tariff schedules. It sets up a state-level relief channel that refunds or credits Michigan-licensed businesses for duties paid on Canadian goods. The mechanism mirrors refund programmes that other border states have explored since 2025.

Which tariff lines would qualify?

The bill text was not available in the WWD report. Until the legislative language is published, softgoods importers cannot confirm whether finished garments, fabric rolls, footwear or accessories fall under the relief umbrella.

For sourcing teams, the relevant question is whether the bill covers HTS chapters 61, 62, 64 and 65 — the lines that govern apparel, footwear and headwear. Those chapters carry the bulk of cross-border softgoods flow.

Why is Michigan moving alone?

Federal tariff actions against Canadian steel, aluminium and selected consumer goods have continued throughout 2025. The US Court of International Trade has issued mixed rulings on the legality of several measures. That uncertainty has pushed state-level policymakers to draft their own countermeasures.

Michigan's economy depends on Canada more than most states. According to the Canadian government, the bilateral trade relationship supports roughly 240,000 Michigan jobs. Canadian visitors spend more than $1 billion annually in Michigan retail, with apparel and accessories among the top categories.

How does USMCA factor in?

The 2020 United States-Mexico-Canada Agreement governs most-favoured-nation duty treatment among the three countries. New federal tariffs on Canadian goods typically bypass USMCA preferences through national-security or unfair-trade justifications, which is why the duties apply at all. A state-level refund programme does not change the underlying federal liability, but it does shift the net cost back to Michigan-licensed buyers.

What should sourcing teams do now?

Buyers with Canadian fabric mills, cut-and-sew partners or finished-goods suppliers should request copies of the bill text once it is posted to the Michigan Legislature website. They should also map which SKUs ship through Michigan ports versus New York, Vermont and Washington — the three other northern-border softgoods entry points.

Compliance teams should track the bill's committee assignment and hearing schedule. A state-level refund programme does not relieve importers of federal duty obligations at the time of entry. CBP Form 7501 entries still require full payment at filing.

Until federal tariff policy stabilises, sourcing managers in Michigan should model two scenarios: one assuming the bill passes and refunds become available, and one assuming it stalls in committee and tariff costs remain a permanent line item. Either path forces a closer look at landed-cost models for any Canadian-origin fabric or trim.