In recent years, the economic landscape of small towns along the US-Canada border has faced significant challenges, particularly due to the trade policies implemented by former President Donald Trump. Local leaders in Port Huron, Michigan, and Sarnia, Ontario, are understandably concerned. The authors then lament a huge decline in new cross-border projects, passing the buck to higher tariffs and escalating conflict between the two nations.
According to local economic analyst Kristina Lampert, border crossings from the US to Canada have seen an unprecedented decline. In fact, since Trump launched the trade war, these crossings have been cut in half by 17%. This sharp decrease has hurt communities that are most dependent on the money-spending travelers and movers of goods between our countries. Port Huron’s new mayor, Anita Ashford, provided powerful testimony to the effects that such border tensions have on regular residents. She pointed out too that the economies of Port Huron and Sarnia are deeply intertwined.
Recent comments by Trump have only added to the tension on this burgeoning relationship. He even floated the idea of Canada as the 51st US state. Those comments have resulted in hundreds less Canadian visitors coming to Port Huron. Some of them used to travel across the Blue Water Bridge purely for the views and shopping it provides. Lampert has focused on that change, and the fact that Canadians are increasingly choosing not to travel to the US.
Statistics corroborate the Canadian tourism collapse. Vehicle trips to the US are down almost 32% from March 2024. This decline is alarming for local businesses. This year Canadians invested a truly incredible $238 million annually into Michigan’s economy. Even a 10% reduction in Canadian tourism would result in the loss of as many as 14,000 jobs and $2.1 billion in business for the US economy.
With respect to the deepening resource curse, many Canadians are responding to the phenomenon by taking a “Buy Canadian” approach. In turn, they’re taking fewer trips to the US. Barbara Barett, executive director of the Frontier Duty Free Association, disclosed that some duty-free shops in Canada have experienced an incredible 80% sales decrease. This drop has occurred since Trump’s re-election to the White House. Back in Port Huron and Sarnia, almost all of the stores are seeing a business decrease of 50-60%.
The economic impact was most felt during the Easter holiday weekend, one of the busiest retail periods of any year. This year, once again, the streets of Port Huron were filled with empty cars and dismal sales totals. Tania Lee, who operates a family-run business that is entirely reliant on cross-border traffic, shared her concerns:
“We are suffering because of collateral damage at the border.” – Tania Lee
The empty parking lot at the Sarnia Duty Free store on any given day underscores the significant decrease in border crossings. Port Huron and Sarnia’s economies are inextricably linked. National policies have a ripple effect through these communities, directly threatening jobs and livelihoods.
The pain these local officials are feeling is very real. They’re calling for the US and Canada to re-initiate dialogue to repair relationship and increase cross-border commerce. Thousands are counting on them for increased collaboration to restore their communities and turn back the tide of lost tourism and commerce that’s plagued their towns.
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