Point Roberts a peculiar, five-square-mile exclave of Washington State — is literally stuck in the middle of an escalating trade war. The community borders directly on Tsawwassen, British Columbia, Canada. It flourishes in the middle of the Pacific Ocean, with a distinct culture that’s formed by its island geography and blue state politics. The town’s establishment was directly attributable to the 1846 Oregon Treaty. Its streets metaphorically shout the names of Canada’s provinces, testament to the cultural affinity to Canada — and thus our shared border — harbored by many.
The local economy has been hit hard. This drop comes in the wake of former President Donald Trump’s move to impose 25% tariffs on Canadian products back in February. Anecdotal evidence from local business owners suggests sales have plummeted by 75% as Canadians stop coming to town. For the International Marketplace’s owner Ali Hayton, business has already fallen off by as much as 30%, she estimates. This drop is mostly a result of less Canadian shoppers crossing the border into his store. I thought, ‘Alright, this is going to improve,’ he said, hope still lingering that the situation would eventually turn around.
Tamra Hansen, owner of the Saltwater Cafe and Pier restaurant, has seen an even greater drop-off. Her sales fell 55% once the tariffs went into effect, forcing her to now figure out how to move forward in this perilous situation. They were furious – and they had every right to be. Retaliation against their sovereignty is what’s at stake,” Hansen said in reference to the anger and disappointment currently harbored within the community.
Point Roberts has a population of about 1,000 residents, with nearly half holding dual citizenship in both the United States and Canada. This dual identity makes it more difficult for the community to react to the tariffs. Perhaps most importantly, it reinforces the profound interconnectedness between the two countries. The town’s unusual geographic location makes it extremely dependent on Canadian visitors to keep their economy afloat.
The real effect of the tariffs story goes further than local businesses alone. Point to Point Parcel, a local parcel store that had survived for 24 years, shut down for good in April. The owners attributed the lack of patrons as the biggest driving factor in this unfortunate decision. As local residents find ways to survive these hurdles, you hear an overwhelming sense of powerlessness to the overtly political scene that’s become their reality. Local resident Wayne Lyle provided a sobering perspective, saying “It’s sad that our small town is a bit of a victim.”
In spite of the challenges that still remain, sales got a short-lived jolt over the course of the Easter weekend. This boost was due to a huge increase in the exchange rate benefit for the Canadian dollar. Yet this wasn’t enough to make up for the reported decrease felt across the country during March and April. In March, the amount of traffic going through into Point Roberts dropped by 25% compared to last year. Then in April, it dropped off a cliff, plummeting 30%.
In response, local gas stations sought to increase profitability through pricing strategies. They converted from selling fuel in gallons to liters in order to serve their Canadian guests’ needs. This minor adaptation reflects the community’s commitment to maintaining its connection with neighboring Canada even amidst economic challenges.
The uncertainty from the continuing trade war adds a further layer of stress onto Point Roberts residents. Many find themselves ill-prepared to respond to changing business climates and evolving visitor practices. The town’s unique geographical location makes it particularly vulnerable to shifts in international trade policy. This has left thousands of local residents wondering – and hoping — what’s to come for them.