Economic Unraveling: Trump's Tariffs Hit Border Communities Hard

As tariffs implemented by former President Trump lead to a significant drop in cross-border traffic, small towns like Port Huron, Michigan, face economic struggles and shifting community ties, affecting everything from local restaurants to duty-free shops.

At the end of a long shift, waitstaff like Kristina Lampert no longer separate their tips into Canadian and American piles, as the influx of Canadian diners has drastically diminished. The Freighters restaurant in Port Huron, located steps from the Blue Water Bridge, once welcomed many visitors from Canada, but recent trade policies have curtailed that tradition. "People aren't coming in for the view anymore," reports Lampert.

Statistics indicate that border traffic between the US and Canada has dropped by about 17% since the imposition of tariffs, with Canadian trips nearing a 32% decline compared to March 2024, according to CBP and Statistics Canada data. The cities of Port Huron and Sarnia, relying on cross-border trade, are feeling the strain. Port Huron, a manufacturing town with just under 30,000 residents, is losing vital day-trip tourism as travel restrictions tighten relations between the neighboring countries.

This shift echoes past hardships faced during the Covid-19 pandemic when border crossings halted for 19 months, causing economic turmoil. Now, the rise of protectionism under Trump's administration sees many Canadians opting to buy goods made domestically rather than traveling to the US. The Duty Free shop in Sarnia, the last stop before entering the US, illustrates this trend starkly, with sales plummeting by as much as 80% for some locations due to reduced crossings.

Tania Lee, who manages a local Duty Free with her family, describes the alarming drop in traffic as "the new norm," with sales failing to meet expectations during peak travel days like Easter. "We're suffering from collateral damage at the border," she states. Residents regularly cross the border for shopping and services, but those habits are being curtailed.

Port Huron's Mayor, Anita Ashford, highlights growing tensions, noting both local residents and Canadians are impacted by rising tariffs. Failed negotiations could cost Michigan $2.1 billion and 14,000 jobs nationwide if Canadian tourism dips by just 10%. With Canadians spending $238 million in Michigan within the past year, the economic toll is evident.

"We need each other," stresses Mayor Ashford, urging Washington to recognize the human cost of their policies. As communities grapple with this new reality, the intertwined fates of Port Huron and Sarnia reveal the critical balance at the heart of US-Canada relations.