Introduction: Trade Tensions Cross Borders
The Trump administration’s aggressive tariff policies are reverberating far beyond Washington. Small towns like Port Huron, Michigan and Sarnia, Ontario are feeling the sting, as cross-border tourism and commerce continue to decline. These local economies—once bustling with Canadians seeking shopping deals and scenic views—are now facing a troubling downturn.
1. Canadian Tourism Drops Significantly
According to Statistics Canada, car trips from Canada to the US dropped nearly 32% compared to March 2024. This sharp decline is having a major effect on businesses in towns like Port Huron that rely on day-trippers from across the border.
2. Duty-Free Stores See Sales Plummet
Sarnia’s Duty Free store, a staple for cross-border shoppers, has seen business fall by over 50% since tariffs ramped up. Barbara Barett of the Frontier Duty Free Association reports some stores are down as much as 80%.
3. Restaurant and Retail Businesses Are Struggling
Kristina Lampert, a waitress in Port Huron, notes a dramatic fall in Canadian diners. “I haven’t separated Canadian tips from American in weeks,” she says. The lack of foot traffic is hurting the restaurant scene, with ripple effects in local retail and hospitality.
4. Local Governments Raise Alarm
Mayor Anita Ashford of Port Huron warns that the fallout could be long-term. “We’re not responsible for this, but we’re the ones suffering,” she says. A national 10% drop in Canadian tourism could mean 14,000 fewer US jobs and over $2.1 billion in lost revenue, according to the US Travel Association.
5. Communities Are Losing Their Cross-Border Ties
Many residents of border towns cross multiple times per week. As economic ties weaken, so too do the cultural and familial relationships that have historically connected communities like Sarnia and Port Huron.
Conclusion: The Cost of Economic Nationalism
While the Trump administration’s trade war is framed as protecting American interests, it’s the small towns on the frontlines that are paying the price. In towns where every dollar counts, even minor declines in tourism and trade have major consequences. As cross-border ties fray, the need for thoughtful, localized economic policy becomes ever clearer.
For a broader analysis, see our piece on How Trump’s Tariffs Are Shaking Up Global Markets.
External sources: BBC News – US-Canada Border Trade War Impact
