US-Canada Trade War Threatens Border Towns and Businesses Ahead of Summer
- Small border towns across Canada are experiencing a severe economic downturn ahead of the summer season as cross-border traffic slows significantly following tariff threats and trade tensions from...
- According to Stanstead Mayor Jody Stone, normal traffic volumes during a customs shift have plummeted drastically.
- Customs and Border Protection agency show that 2.2 million travelers crossed the border in passenger vehicles in February, representing half a million fewer passages compared to the same...
Small border towns across Canada are experiencing a severe economic downturn ahead of the summer season as cross-border traffic slows significantly following tariff threats and trade tensions from the United States administration, according to reporting by La Presse. Local businesses that rely on the steady stream of travelers crossing the international boundary report an immediate drop in customers. The newly formed Alliance of Mayors of Border Communities held a joint front to highlight an issue they argue is being overlooked while national governments focus on major industrial sectors.
Border Communities Warn of Lost Summer Revenue
According to Stanstead Mayor Jody Stone, normal traffic volumes during a customs shift have plummeted drastically. Stone stated in reporting by La Presse that border guards typically handle about 400 vehicles moving from Quebec into the United States during a shift, but that number has recently fallen to roughly 100 cars.
Mayors representing municipalities across Ontario, New Brunswick, Alberta, Manitoba, and British Columbia echo similar concerns. The newly established coalition is urging governments to extend economic relief to border communities, mirroring support given to industries hit directly by tariffs.
Ma crainte, c’est que pendant le pic estival, les vacanciers qui vont à Old Orchard et ailleurs au sud de la frontière ne passent plus. Des commerces qui s’attendent à avoir des mois plus forts en revenus ne les auront pas.
Jody Stone, maire de Stanstead (La Presse)
The slowdown extends well beyond local cafes and convenience stores. CNN reported that the owner of the Point of View Inn, an establishment in Old Orchard, experienced a loss of at least 90 percent in summer reservations from Québécois over recent weeks.
Plummeting Traffic Hits Duty-Free Shops and Tourism
Official figures from the U.S. Customs and Border Protection agency show that 2.2 million travelers crossed the border in passenger vehicles in February, representing half a million fewer passages compared to the same month last year.
Duty-free shops situated directly along the border are absorbing immediate losses from the dip in travel. Philippe Bachand, owner of the duty-free boutique near the Philipsburg border crossing, told La Presse that foot traffic has dropped by 50 percent since the beginning of March.
Ce qui me préoccupe le plus, c’est qu’il y a même une baisse du côté de la clientèle américaine,
Philippe Bachand (La Presse)
Bachand noted that rising stock orders and increasing invoices are colliding with diminished sales on high-value items such as cosmetics, fragrances, and fashion goods.
In British Columbia, duty-free operator Cam Bissonette reported facing negative daily sales due to customer returns, noting that unlike steel, aluminum, or softwood lumber producers, duty-free businesses cannot easily diversify their markets because all inventory must flow across the American border.
