In Port Huron, Michigan, just across the river from Sarnia, Ontario, the economic ripple effects of U.S. trade policies are being felt in everyday routines. Kristina Lampert, a server at Freighters restaurant near the Blue Water Bridge, used to finish her shifts by dividing her tips between American and Canadian dollars. Lately, she hasn’t needed to do that.
Freighters is often the first stop for travelers entering the U.S. from Canada, offering panoramic views of the bridge that links the two countries. Lampert recalls how Canadian customers once came for both the food and the scenery. “They used to tell us they came just for the view,” she says. “I haven’t heard that in a long time.”
The slowdown began when former President Donald Trump reintroduced tariffs and made inflammatory remarks about Canada, even joking about annexation. Since then, cross-border traffic has seen a noticeable drop. 
According to U.S. Customs and Border Protection, crossings along the northern border have declined by roughly 17%. Statistics Canada reports an even steeper fall in Canadian vehicle trips to the U.S.—down nearly 32% from March 2024.
Towns like Port Huron and Sarnia, with deeply intertwined economies, are feeling the strain. Port Huron, home to under 30,000 residents, relies heavily on cross-border commerce and tourism, boasting a quaint downtown filled with shops and restaurants popular with Canadian visitors.
A short drive from Sarnia typically brings travelers into Michigan in under ten minutes, but many now opt to stay on their side of the border. It’s a stark contrast from the pre-pandemic years when people crossed frequently for shopping, dining, or weekend outings.
The first blow to border town economies came during the COVID-19 pandemic, when travel restrictions halted movement between the countries for over a year and a half. Just as these areas began recovering, a second wave of economic hardship has emerged, fueled by strained diplomatic relations and retaliatory consumer habits. Many Canadians are now intentionally spending their money domestically.
The downturn is especially visible at the Sarnia Duty Free store, the last Canadian stop before entering the U.S. Shelves remain stocked, but the customer count has dwindled. Barbara Barrett, Executive Director of the Frontier Duty Free Association, says that some of Canada’s 32 land-based duty-free shops have experienced an 80% decline in revenue. Most have suffered drops of 50-60%.
“These businesses are the backbone of their communities,” Barrett explains. “They survive on cross-border traffic. When people stop traveling, everything slows down.”
Even one of the more active border points—Sarnia to Port Huron—is struggling. On a typically busy May Friday, the Duty Free parking lot is nearly deserted. Tania Lee, whose family owns and runs the store, says this has become the new reality.
She describes how Easter weekend, traditionally one of their busiest times due to Canadians crossing for U.S. church services and meals out, was underwhelming. “We’re collateral damage in this political conflict,” Lee says, lamenting the blow to her second-generation family-run business.
Residents on both sides of the border are feeling it. Many, like Lee, regularly cross for errands or shipping needs. She maintains a mailbox in Port Huron, a common practice among locals.
Port Huron’s Mayor, Anita Ashford, confirms the local frustration. She says residents—both American and Canadian—have voiced concerns about the rising political tension and its local consequences.
The U.S. Travel Association warns that a 10% dip in Canadian tourism could cost the American economy around 14,000 jobs and a $2.1 billion loss in revenue. Michigan alone saw $238 million in spending from Canadian tourists in 2023. That money is vital to towns like Port Huron.
“We didn’t create this situation,” Mayor Ashford emphasizes. “This is a federal issue, but it’s the local communities that are paying the price.”
She adds, “Our relationship with Canada is essential. We need one another, and it’s time for Washington to recognize that.”
