Trade War Fallout Hits Small-Town America Near Canada

Port Huron and surrounding border towns, heavily affected by Trump's trade policies, face significant economic challenges as Canadian tourists decline in numbers. Local businesses report severe drops in sales and traffic, prompting calls for action from community leaders.

At the end of her shift at Freighters, a restaurant in Port Huron, Michigan, Kristina Lampert used to count her tips and separate them into Canadian and American currencies. However, in recent weeks, that practice has been abandoned as fewer Canadians cross the border. Freighters sits just a stone's throw from the Blue Water Bridge, where visitors from Canada often enjoy panoramic views, something Lampert notes has dramatically changed.

Since the onset of President Donald Trump's trade tariffs, border crossings from Canada have dipped by approximately 17%, according to Customs and Border Protection (CBP) data. Statistics Canada reveals an even steeper decline, with car trips to the US plunging nearly 32% compared to March 2024. Communities like Port Huron, with a population just under 30,000, and its counterpart Sarnia, Ontario, have long relied on their intertwined economies, especially when it comes to tourist traffic.

The initial economic strain these towns experienced came during the Covid-19 pandemic when border closing resulted in a significant downturn for local shops and eateries. Now, the Trade War is inflicting a second wave of economic hardship as Canadians shift to "Buy Canadian," opting to purchase domestic goods over traveling south, further straining relations between the two nations.

One of the more pronounced effects is at Sarnia's Duty Free store—the last stop for travelers heading into the US. Since the tariffs were reinstated, store executive Barbara Barett reports that sales have plummeted by as much as 80%, causing major disruptions in revenue for many of the 32 land-border duty-free locations throughout Canada.

Nearby, the atmosphere at the Sarnia Duty Free is starkly different from past years, with Tania Lee describing empty parking lots and diminished sales as the new normal, something she considers alarming, especially on traditionally busy holidays.

The impact goes beyond individual businesses, according to Port Huron Mayor Anita Ashford, who acknowledges the collective frustration from both residents and Canadians regarding the hostile trade situation. Nationally, a mere 10% decrease in Canadian tourists could cost the United States around 14,000 jobs and over $2.1 billion, warns the US Travel Association, a consequence Michigan might heavily bear.

In 2023 alone, Canadians injected approximately $238 million into Michigan's economy, which is vital for border towns. Reflecting on the ongoing strain, Mayor Ashford voices hope that Washington will recognize the adverse effects of these policies on local communities that thrive on cross-border relations.

"We need each other," she asserts, emphasizing her belief in the importance of fostering cooperation and understanding between the two countries.