Philippe Bachand was in his mid-20s when he helped open his household’s duty-free retailer an hour south of Montreal.
Within the 37 years since, he has by no means seen such a drastic drop-off in site visitors and gross sales whereas the Canada-U.S. border was open.
After U.S. President Donald Trump launched his commerce warfare and mused about annexing Canada, income started to plummet in lockstep with shrinking traveller volumes.
“January was not too dangerous. February was beginning to decelerate, after which March, with the brand new tariff and all that, my Canadian site visitors was down 50 per cent,” mentioned Bachand, 63, whose store sits in Philipsburg, Que.
“It’s not enjoyable.”
His expertise displays a blow felt by duty-free retailer house owners throughout the nation as Canadian travellers keep away from america amid anger over tariffs, fears about remedy by border guards and demeaning feedback from Trump about Canada as a possible “51st state.”
Gross sales at duty-free shops have fallen between 40 and 50 per cent throughout the nation since late January, with some distant crossings reporting declines of as much as 80 per cent, in accordance with the Frontier Responsibility Free Affiliation.
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“It simply dropped off the cliff,” mentioned government director Barbara Barrett, whose affiliation represents 32 shops. “It’s very grim.”
The mom-and-pop retailers, which promote merchandise tax-free starting from maple cookies to Canadian Membership whiskey, have been simply beginning to bounce again from the COVID-19 pandemic when the commerce warfare struck, house owners mentioned.
“I simply awoke from my COVID hangover, and I’m having a tariff nightmare,” mentioned John Slipp, whereas driving to the duty-free outlet in Woodstock, N.B., that his father based in 1985.
Whereas duty-free shops at land crossings quantity fewer than three dozen, they are often cornerstones of the native economic system in rural areas.
Layoffs loom as a chance if enterprise fails to show round.
“I’ve not made them but, however I’m going to be,” Slipp mentioned.
The Frontier Responsibility Free Affiliation, whose tightly regulated members wouldn’t have the choice to pivot to supply or on-line gross sales, is asking on the federal authorities to supply help within the type of grants or loans to experience out the disruption.
“We’re 100 per cent depending on that journey over the border,” Barrett careworn. “It’s important to be travelling over to america to enter into our shops.”
The variety of Canadians returning by automotive from the U.S. fell almost 32 per cent final month in comparison with March 2024, the third consecutive month of year-over-year declines and the steepest plunge because the pandemic, in accordance with Statistics Canada.
At some crossings, Individuals going again dwelling make up the majority of the consumers. However automotive visits by U.S. residents dropped 11 per cent final month versus a yr earlier, the second straight month of year-over-year declines.
“It’s just like the Individuals are shy to return to Canada,” mentioned Bachand. He pointed to the boos that American sports activities groups have acquired in Canada over the previous two months.
“It’s not welcoming.”
© 2025 The Canadian Press
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