Canadian Border Crossings Plummet, Creating Crisis for Duty-Free Retailers
WASHINGTON, D.C. — A significant decline in Canadian travel to the United States is creating devastating consequences for border businesses, particularly duty-free shops that rely exclusively on southbound traffic. Political tensions, trade disputes, and nationalist rhetoric have combined to dramatically reduce cross-border movement, leaving retailers struggling for survival.
The Numbers Tell a Troubling Story
Statistics Canada reveals a stark trend: in 2025, Canadians made just 22.9 million trips to the U.S., representing a 28% decline from the previous year's 31.9 million trips. The downward trajectory continues into 2026, with January showing only 2.1 million Canadian return trips to the U.S.—a 22% decrease from January 2025.
"The highway is dead. There are no vehicles out there," said Simon Resch, owner of Emerson Duty Free in Manitoba. His business has experienced monthly revenue declines between 30% and 50% since 2024, with an astonishing 75% drop since 2019. Resch attributes this collapse directly to political factors and growing anti-U.S. sentiment among Canadians.
Political Rhetoric Takes Its Toll
Multiple factors have converged to discourage Canadian travel southward. Trade disputes, former U.S. President Donald Trump's provocative "51st state" comments, and encouragement from Canadian political leaders to "buy Canadian" have all contributed to reduced interest in American products and vacations.
"There were certain elected politicians who were telling people not to go to the USA," explained Cameron Bissonnette, who owns duty-free shops in Osoyoos, B.C. and the East Kootenays region. "It's not like I'm running my business poorly."
Businesses Face Existential Threats
The 31 remaining land border duty-free shops in Canada face unprecedented challenges. Unlike during the COVID-19 pandemic when government relief programs were available, no assistance exists for the current crisis. These shops can only sell to customers traveling into the United States, making them uniquely vulnerable to declining southbound traffic.
One store, Woodstock Duty Free, closed permanently last summer after three decades in business, citing plunging cross-border traffic and sales. The surviving shops have implemented drastic measures to stay afloat.
Resch's staffing illustrates the severity: from 35 employees in 2019, he now employs just four people, including himself. Bissonnette has similarly reduced operations to himself and one manager per location.
Uncertain Future for Border Retail
Business owners express deep concern about their ability to continue operations. The post-pandemic recovery that duty-free shops began experiencing has been completely reversed by what retailers call "the Trump effect," resulting in 13 consecutive months of dramatically reduced business.
"If this summer doesn't materialize, I'm going to have to make some very difficult decisions come October or November," Bissonnette warned, highlighting the precarious position of border businesses.
Resch offered a blunt assessment of government support: "We could not find worse partners than the federal government of Canada if we went looking for them."
The situation represents more than just a retail crisis—it reflects broader shifts in cross-border relations and travel patterns that may have lasting implications for border communities and international commerce between the two nations.
