Border tensions between the United States and Canada are especially hurting the small border towns. For Port Huron, Michigan, and Sarnia, Ontario, the economic blow is being felt most severely. At the time that former President Donald Trump put these tariffs in place, border crossings have subsequently dropped off a cliff. This decrease has resulted in significant economic hardship for communities that rely on cross-border trade and tourism.
Kristina Lampert, a local business owner, reported that border crossings between the two nations have plummeted by 17% since Trump initiated tariff policies. Port Huron Mayor Anita Ashford recently called attention to the decline in cross-border traffic. She pointed out that communities in and around Port Huron, Michigan—home to the Blue Water Bridge—are already experiencing the effects of heightened tensions.
It’s no surprise then that the economies of Port Huron and Sarnia are closely tied. In the past, they have depended on the flow of people and goods across the border. Now, Canadian visitors are deciding not to cross the border due to this increasingly hostile relationship. Consequently, merchants in both of those towns are suffering from beggaring declines. That’s what struck Lampert about this change in attitude among many Canadians. Initially attracted to the region’s beautiful vistas, they now want to keep their distance.
According to local economic data, a 10% decrease in Canadian tourism would result in the loss of as many as 14,000 American jobs. This decrease may lead to an anticipated $2.1 billion loss in business income. This huge number paints a jarring picture of the economic fraying of communities such as Port Huron. Despite a population of under 30,000 people, Port Huron boasts an attractive downtown, known for its retail storefronts.
As we drove through Santa Fe one recent Easter weekend, the absence of crowds was striking. With cars being so scarce in Port Huron, many businesses in the area found themselves with lackluster sales. Tirelessly, Ashford has the ear of the people—residents and Canadians alike—with frustrations. Yet they continue to bear the brunt of the increasing tensions between the two countries.
It was around the same time that Statistics Canada announced that Canadian car trips to the U.S. are down almost 32% compared to March 2024. Spending figures reflect a bitterly disappointing continued drop-off in Canadian visitors’ contribution. With these new projects in 2023, combined, they brought $238 million into Michigan’s economy. Barbara Barett, representing local independent retailers, shared a jaw-dropping statistic. Canada’s duty-free shops have reported an 80% sales decrease since Trump retook the White House. Of those home stores in MWF’s region, nearly all have experienced a 50-60% decrease in business.
Tania Lee, owner of the Sarnia Duty Free, wrote about her fear for her business’s future. At Subway, she said her business depends almost exclusively on cross-border travel and she’s seen her customer base drop by more than 80 per cent.
“We are suffering because of collateral damage at the border.” – Tania Lee
To offset some of these tensions, Canadian consumers are embracing a “Buy Canadian” mentality. At the same time, American retailers are girding themselves for a long slump. Lampert noted that while Canadian shoppers formerly flocked to U.S. stores for their diverse offerings, many now prefer to support local Canadian businesses.
For Mayor Ashford, the U.S.-Canada relationship is more than just words. He claimed that it was essential for economic prosperity in Port Huron and Sarnia. She urged dialogue and cooperation to mend ties and restore the flow of cross-border traffic that both communities rely upon.