Economic Ripple Effects: Trump’s Trade War Hits Small-Town America Hard

The trade war initiated by former President Trump has led to a swift decline in cross-border tourism and sales in small towns, deeply affecting local economies reliant on Canadian visitors.

As the sun set over the Blue Water Bridge connecting Port Huron, Michigan, to Sarnia, Ontario, the local community felt the pinch of reduced Canadian traffic, tracing its roots to the tariffs imposed during the Trump administration. Kristina Lampert, a waitress at Freighters restaurant, reflected on a significant shift in clientele: “I haven't heard much from our Canadian visitors lately,” she lamented.

Freighters, a popular stop for Canadians crossing into the U.S., is witnessing the impact first-hand as border crossings are down approximately 17% since tariffs were enacted. Statistics Canada reported a staggering 32% drop in car trips made by Canadians entering the U.S. compared to March 2024. This decline in traffic is not just a blip; it's part of a broader economic challenge for Port Huron, a quaint manufacturing town with under 30,000 residents that thrives on cross-border commerce.

The symbiotic relationship between Port Huron and Sarnia is under strain, echoing the economic shocks experienced during the 19-month closure of border crossings due to the COVID-19 pandemic. Now, many Canadians are opting to "Buy Canadian," leading to a decreased willingness to travel to the U.S. This is starkly evident at Sarnia's Duty Free, the last stop for Canadians before entering the U.S., where sales have plummeted by as much as 80%. “We’re entirely dependent on cross-border travel,” lamented Barbara Barett, the executive director of the Frontier Duty Free Association.

A recent trip to the Duty Free by Tania Lee revealed nearly empty parking lots and silent aisles, a stark contrast to the usual bustling atmosphere during Easter. “We’re suffering because of collateral damage at the border,” Lee said, highlighting how families from border communities typically navigate both sides of the border multiple times each week.

Port Huron's Mayor Anita Ashford echoed these sentiments, noting the frustration residents have expressed regarding the tariff-induced tensions between the neighboring countries. Nationally, experts predict that a 10% dip in Canadian tourism could cost the U.S. an estimated 14,000 jobs and $2.1 billion in revenue, with Michigan likely facing a significant share of these losses.

In 2023 alone, Canadians contributed about $238 million in spending to Michigan, underscoring the necessity of maintaining strong cross-border relations. “I hope decision-makers in Washington realize the implications of these policies on our communities,” Mayor Ashford urged, reinforcing the vital interdependence of the two nations. “We truly need each other.”