Economic Strain on Border Towns Amidst Ongoing Trade Tensions

Port Huron, Michigan, and neighboring Sarnia, Ontario, are experiencing economic decline as a result of a drop in Canadian tourism and heightened trade tensions attributed to former President Trump's tariffs. Local businesses and economies, historically interconnected, are struggling as Canadians opt to "Buy Canadian" and travel less to the US.

Along the border between the United States and Canada, towns like Port Huron, Michigan, and Sarnia, Ontario, are grappling with the economic ramifications of increasing trade tensions and tariffs introduced during Donald Trump's administration. This situation has led to a noticeable decrease in Canadian visitors, impacting local businesses that once flourished on cross-border tourism.

Kristina Lampert, a waitress at Freighters, a popular restaurant with views of the Blue Water Bridge, reveals that she no longer separates tips into Canadian and American currency, citing a drastic reduction in Canadian clientele. According to Customs and Border Protection (CBP) data, border crossings have plummeted by around 17% since the initiation of tariffs, with Statistics Canada indicating a nearly 32% decrease in car trips from Canada to the US since March 2024.

Port Huron's economy is intricately linked to Sarnia's, as many residents frequently cross the border for shopping and entertainment. However, the COVID-19 pandemic had already strained these border economies, with prolonged shutdowns causing significant downturns. Now, the imposition of tariffs has prompted many Canadian consumers to opt for local products, signaling a shift in purchasing behavior that further exacerbates the economic strain on towns reliant on cross-border traffic.

Businesses like Sarnia's Duty Free store are feeling the sting of reduced sales. The executive director of the Frontier Duty Free Association, Barbara Barett, notes that some duty-free shops have seen sales drop by up to 80% since Trump's presidency reignited tariff conflicts, leading to significant challenges for community reliance on these establishments. Local business owner Tania Lee attests to the emptier parking lots and declines in holiday traffic, calling it "collateral damage" from the escalating border tensions.

Port Huron Mayor Anita Ashford has voiced concerns from her constituents about the fallout from the deteriorating trade relationship, emphasizing the mutual dependence that both communities share. Nationally, experts predict that even a 10% reduction in Canadian tourism could lead to a loss of up to 14,000 jobs and $2.1 billion in revenue for the US economy.

As discussions about tariffs and trade policy continue, Mayor Ashford hopes for a recognition from Washington about the direct impact on border-town residents and their economies. “We need each other,” she summarizes, highlighting the interconnectedness that has traditionally characterized the relationship between these neighboring communities.