A Canadian Startup’s Guide to Navigating US Trade

Marc Beaupré never imagined his passion
for high-end cosplay costumes would land him in the middle of international
trade politics. Yet the founder of Kigurumi
(colloquially called “Kigu” by fans) — a 14-year-old, Montréal-based company
specializing in premium, Japanese-inspired onesies — now finds himself daunted
by the new costs and complexities of cross-border business expansion.

“We have a pretty significant footprint in New York already with the huge
cosplay and anime communities in NY and NJ, and would like to explore
committing further to the state,” Beaupré told me during a recent interview.

But it may be bad timing: With the US administration’s dramatic
125%
(at press time) tariffs on Chinese imports taking effect this week, small
specialty retailers such as Kigurumi face difficult decisions about US market
crossover.

The company’s meticulously crafted onesies have developed a cult following among
cosplay enthusiasts who appreciate their durability and authentic Japanese
styling — qualities that set them apart in an industry often dominated by cheap,
disposable costumes.

A software engineer by training, Beaupré brings an analytical mind to his
business — paying attention to every product detail.

“My background in software taught me to be methodical and precise. I am
passionate about applying that same type of thinking to our manufacturing
process,” he said. “What we’re creating isn’t just a costume — it’s an
experience of comfort and quality that lasts. Every stitch is designed to bring
joy; and that philosophy extends to how we approach our business expansion, as
well.”

Beaupré says sustainability through durability has become a cornerstone of
Kigu’s business philosophy: “I believe true sustainability starts with creating
products that aren’t disposable. We focus on making items that last for years,
not just a single convention or Halloween.”

This commitment to quality extends to his supply chain management.

“I personally know our suppliers in China and have visited the factory multiple
times,” Beaupré said. “Building these relationships means I can ensure our
manufacturing standards are maintained and working conditions meet our
expectations. They’re very open to collaborating on new approaches and
materials, as well — particularly on sustainability.”

“I inspect samples personally and test every new design myself before it goes to
production,” he added. “If I’m not comfortable wearing it all day, it doesn’t
get approved.”

The new US tariffs have accelerated Beaupré’s interest in bringing some
operations to New York.

“Getting clobbered with these new tariffs is forcing us to consider
alternatives,” he admitted. “Moving some manufacturing to New York would not
only help with tariffs but could open new doors for sustainability
experimentation.”

Kigu’s sustainability plans extend beyond durability: Beaupré says the company
is exploring non-toxic dye certification, as well as increasing circularity through take-back and
recycling programs — both efforts that are practically unheard of in the costume
industry.

“Most costumes end up in landfills after a single use,” he noted. “We’re
designing our products with eventual disassembly and material recovery in mind.
A New York operation could serve as our sustainability innovation lab.”

The cosplay market has exploded in recent
years.
New York and New Jersey represent substantial markets for these products, with
anime conventions regularly drawing tens of thousands of attendees. But what
makes New York particularly appealing for Beaupré isn’t just the customer base.

“Access to graduates from the Fashion Institute of Technology, exposure
during NY Fashion Week, and proximity to world-class design houses and
cosplay conventions would be invaluable for our product development,” he
explained.

The historical context adds another layer of opportunity. New York’s garment
district was once the beating heart of US apparel manufacturing, with
infrastructure and expertise developed over generations. Though diminished from
its heyday, the innovative foundations
remain
for niche operators willing to invest.

Despite these advantages, Beaupré hesitates. Like many Canadian businesses
eyeing expansion into the States, he’s found a surprising lack of targeted
support for companies in his position.

“We’re a very small business. If I could have access to a grant or a hybrid loan
grant with some portion forgivable, I could really consider it in earnest,”
Beaupré said, after discussing the multiple logistical challenges of
cross-border operations.

When pressed on specifics, he offered a surprisingly modest assessment: “A
couple of hundred thousand in grants, tax breaks and other financial incentives
would be enough — and I’m confident I could return that multiple times over in
jobs, IP and innovation in NY.”

Beaupré has explored several of New York’s business development programs,
including the New York Forward Fund
and Empire State Development‘s Global
NY initiative, but found they
weren’t tailored to businesses in his unique position.

“As a comfiness expert, I understand that one size doesn’t fit all,” Beaupré
said with a smile. “The same applies to business incentives. What works for a
tech startup might not address the needs of a specialty garment manufacturer
with specific, cross-border logistical challenges.”

The ball now appears to be in New York’s court. As the state continues its
long-standing efforts to revitalize manufacturing and support creative
industries, companies such as Kigurumi represent exactly the kind of business
that could thrive in its ecosystem. The question remains whether, in the face of
prohibitive tariffs, blue states will develop more aggressive incentive
structures to capture these opportunities before they’re lost to other regions
and countries.

Beaupré isn’t alone in his dilemma. Other Canadian manufacturers considering US
expansion have noted similar concerns about New York’s approach to international
business recruitment. Despite the state’s strong manufacturing legacy and
creative industry presence, its incentive programs for small to mid-sized
foreign companies appear to lag behind the targeted recruitment efforts many
businesses have come to expect when considering significant cross-border
investments.

Canadian businesses benefit from numerous federal export incentives in their
home country — including the
CanExport
program that provides up to $75,000 in funding to explore new international
markets, and Export Development Canada‘s financing
solutions that offer working capital and
risk mitigation. The Trade Commissioner
Service also delivers market
intelligence and introductions to qualified contacts abroad. In stark contrast,
New York State’s economic development programs lack targeted pathways
specifically designed for small to mid-sized Canadian specialty manufacturers.
While the START-UP NY program offers
tax-free zones near colleges and the Excelsior Jobs
Program provides tax credits for job
creation, these broad initiatives fail to address the unique challenges that
small and growing international businesses face when establishing US operations
— leaving companies such as Kigurumi without clear support during a critical
expansion juncture.

As global markets for specialty retail continue evolving amid uncertain trade
conditions, Kigurumi’s story illustrates a broader economic narrative playing
out across North American borders. Beaupré’s company represents precisely the
type of innovative, growth-oriented business that can revitalize manufacturing
districts and create specialized employment opportunities. The modest investment
needed — when measured against the potential returns in jobs, innovation and
economic activity — highlights a compelling case for nimbler, more targeted,
perhaps even personalized incentive structures.

For New York and similarly positioned states, the opportunity to capture these
entrepreneurial ventures depends on recognizing that in today’s competitive
landscape, traditional approaches to business recruitment may no longer suffice.
The question remains whether policymakers will adapt quickly enough to secure
these economic opportunities before they find homes elsewhere.

Visit kigurumi.ca and use code “YOLO” at checkout during April for a Buy One, Get One Free offer while supplies last.

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Jeremy Osborn

Jeremy Osborn is a NYC-based entrepreneur and and senior consultant with a background in marketing and communications, tech, strategy, governance, and sustainability. He holds an MA in Resources, Environment, and Sustainability from the University of British Columbia and has worked for leading brands in a wide range of industries and sectors — including food and ag, consumer goods, built environment, industrial manufacturing, energy, finance, transportation, and more.

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Published Apr 11, 2025 2pm EDT / 11am PDT / 7pm BST / 8pm CEST