Economic Impact of Trump's Tariffs Hits Border Towns Hard

With a significant decrease in Canadian visitors since the imposition of tariffs, small towns like Port Huron, Michigan, are witnessing a sharp decline in their economies, raising concerns among local businesses and officials regarding the long-term effects of the trade policies on border communities.

Along the US-Canada border, communities are feeling the harsh impacts of the tariffs imposed by former President Donald Trump, which have led to a notable downturn in the local economies. Port Huron, Michigan—a small town with a vibrant retail scene—has seen a significant drop in Canadian visitors, who traditionally contribute to its economy. Kristina Lampert, a waitress at Freighters restaurant, recalls a time when it was common for Canadian diners to enjoy their meals there, citing a drop in traffic and a shift in customer demographics since the tariffs took effect.

According to data from Customs and Border Protection (CBP), border crossings have declined by around 17% due to these trade policies, while Statistics Canada reported that car trips from Canada to the US plummeted by nearly 32%. Port Huron and nearby Sarnia, Ontario, have historically relied on cross-border tourism and commerce, creating an interconnected economic ecosystem that is now under pressure.

With the shadow of the Covid-19 pandemic still looming over them—when border closures caused a 19-month hiatus in crossings—local businesses are now grappling with reduced patronage. Sarnia's Duty Free store, which serves as the last retail stop before entering the US, illustrates this downturn with an alarming 80% decrease in sales for some locations since the onset of Trump’s tariffs, according to Barbara Barett, executive director of the Frontier Duty Free Association. This situation has transformed bustling tourist spots into nearly deserted locales.

The impact is also felt within these communities, as residents who would typically cross the border for shopping or dining experiences are now refraining from traveling. Tania Lee, who operates a family-run business at the Sarnia Duty Free, notes that Easter weekend—their peak tourist time—was disappointingly quiet this year, reflecting a broader trend in reduced sales and customer interactions.

Moreover, the mayor of Port Huron, Anita Ashford, has voiced concerns over the escalating tensions between the two nations, emphasizing the interdependence of border communities and the need for understanding from national policymakers. She highlights that a decrease in Canadian tourism could result in substantial economic losses for Michigan, potentially costing thousands of jobs and billions in revenue—a situation that leaves many in her community worried about their financial futures.

As border towns continue to navigate these challenges, the futures of local businesses hang in the balance, underscoring the critical need for dialogue and cooperation between the US and Canada to foster economic recovery.