Over a year into President Donald Trump’s second-term tariff strategy, tensions between the United States and Canada continue to shape consumer behavior, border activity, and business revenues along the Washington State border. While tariffs on a wide range of Canadian goods were introduced to strengthen America’s trade leverage, the policy shift has fueled resentment among Canadians—many of whom are now actively avoiding U.S. travel and purchases.

Trump’s earlier remarks suggesting that Canada “should be the 51st state” only heightened frustrations among Canadian residents. That resentment has since evolved into an unofficial but powerful boycott. Families have canceled long-planned vacations, shoppers are withholding their spending in U.S. stores, and cross-border trips have fallen noticeably. New numbers now reveal the full extent of the economic hit communities in Whatcom County are experiencing.

Sharp Declines in Cross-Border Traffic

According to the Bureau of Transportation Statistics (BTS), border crossings between Washington and Canada dropped dramatically in 2025. Between June and August of 2024—traditionally the busiest months—over 5.37 million people traveled into Canada from Washington. During the same period in 2025, the figure fell to 3.98 million, marking a steep 25% decline.

Local monitoring by the Whatcom Council of Governments confirms the trend. While crossings ticked upward during summer compared to early 2025, the overall tally remains roughly 29% below last year’s levels. In fact, every month since February has recorded year-over-year drops ranging between 21% and 36%, except July, which still recorded a noticeable dip of 14%.

August, September, and October saw decreases of 27%, 29%, and 26% respectively—signaling a sustained downturn rather than a temporary dip.

Business Owners Feeling the Pressure

For many Whatcom County businesses, the consequences have been immediate and painful.

Earlier this year, Hugh Newmark—co-owner of 1-Up Lounge and Cardhaven Games—reported a severe decline in Canadian customers. With manufacturers limiting supplies due to tariff complications, prices for game products have soared, leaving retailers with higher expenses and fewer buyers. Newmark describes the shift as a “day one impact,” emphasizing that their once-reliable Canadian customer base has all but evaporated.

State of Washington Tourism estimates underline how critical Canadian visitors are: nearly 25% of the $2.45 billion spent by international tourists annually comes from Canadians traveling to Seattle. In Whatcom County specifically, Canadians typically account for almost 12% of taxable retail sales.

But those numbers are no longer holding.

In Birch Bay, Betty Be Good Boutique—a retailer long popular among cross-border shoppers—experienced an 80% plunge in Canadian customer traffic between January and April. Owner Suzanne Smith initially suspected a total boycott and reported that even local spending had weakened.

While she noted a slight improvement during the summer—roughly a 10% increase in Canadian visitors—fall sales collapsed again. Smith recently revealed that year-over-year fall revenue has dropped by 55%. “It’s still the same issue,” she explained. “Canadians aren’t coming, and even local spending is down.”

Breakdown of Current U.S. Tariffs on Canadian Goods

According to the Canadian Federation of Independent Business, the U.S. tariffs now in effect include:

• 35% tariff on all imports not compliant with CUSMA (effective April 2)

• 10% tariff on non-CUSMA potash and energy products

• 50% tariff on imported aluminum and steel (effective June 4)

• 25% tariff on all non-U.S.-made cars and trucks

  
  
  

• 50% tariff on copper (effective August 1)

• 35% tariff on softwood lumber (effective October 14)

• 25% tariff on upholstered wood products, cabinets, and vanities

• Elimination of the $800 de minimis exemption, meaning low-value goods now attract duties

• 40% penalty tariff for businesses attempting to transship goods to avoid the 35% tariff

With rising retail prices, tightening supply chains, and diminishing Canadian presence, Whatcom County businesses are bracing for a long-term economic struggle.

FAQ

1. Why are Canadians boycotting U.S. goods and travel?
Many Canadians are reacting to Trump’s tariffs and his remarks about Canada becoming “the 51st state,” choosing not to shop or vacation in the U.S.

2. How much have border crossings dropped?
BTS data shows a 25% decline during peak 2025 travel months compared to 2024.

3. Which local businesses are most affected?
Retailers, restaurants, and tourism-dependent outlets in Whatcom County report the most significant losses.

4. What tariffs are currently affecting Canadian imports?
Tariffs range between 10% and 50%, depending on the product, with additional penalties for non-CUSMA goods.

5. Are local businesses recovering?
Some saw minor improvements during summer, but most continue to report depressed sales.