“Concerns Arise Among Border Communities Over Impact of Unexplained Tariffs”
DETROIT (AP) — Within the U.S. Embassy in Ottawa, a quote attributed to former President Ronald Reagan is etched on a wall: “Let the 5,000-mile border between Canada and the United States serve as a symbol for the future,” Reagan remarked upon signing a free trade agreement with Canada in 1988. “Let it forever be a meeting point between our esteemed and genuine friends, not a division.” However, the current climate brings about a sense of division. President Donald Trump is set to enact a 25% tariff on most Canadian imports and a 10% tariff on Canadian oil and gas. Mexico is also facing a 25% tariff. In response, Canada has announced a 25% import tax on various American goods, including wine, cigarettes, and shotguns.
These tariffs have stirred a range of sentiments along the world’s longest international border, where residents and industries share close connections. Canadian ranchers depend on American equipment and export livestock to U.S. meat processors. American consumers savor Canadian maple syrup each year. Even pets in Canada enjoy American-made pet food. This trade dispute will have widespread repercussions, leading to price hikes, administrative delays, and longer border wait times for both individuals and goods, says Laurie Trautman, director of the Border Policy Research Institute at Western Washington University. Trautman notes, “These industries on both sides are interwoven in a cross-border relationship, and any disruptions will impact both sides.”
The mere threat of tariffs may have already caused lasting damage, Trudeau has encouraged Canadians to support local products and tourism. The Associated Press sought to understand the sentiments of residents and businesses along the border that Reagan vowed would remain free of “invisible barriers of economic doubt and fear.” Here is what they shared:
Skagway, Alaska-Whitehorse, Yukon
During the Klondike gold rush in the late 1890s, individuals flocked from the bustling town of Skagway, Alaska, to Canada’s Yukon in search of fortune, following paths that Indigenous communities had long used for trade. Today, Skagway capitalizes on its history, attracting over a million cruise passengers annually with its historic downtown and Klondike-themed museums. However, with a population of about 1,100, the municipality maintains strong connections to the Yukon. Skagway residents often travel to Whitehorse, the Yukon’s capital, for a wider array of goods, services like dental and veterinary care, and recreational activities like swimming lessons. The Alaskan city’s port remains essential for fuel and supplies vital to both communities. Orion Hanson, a contractor and Skagway Assembly member, emphasizes the special bond with Whitehorse, situated 110 miles (177 kilometers) to the north with a population of 30,000. Hanson worries about potential price impacts on construction materials such as lumber, concrete, and
He mentioned that he would likely continue visiting Alaska border towns while opting not to explore other regions of the United States. Reflecting on this decision, he stated, “Is it logical? I’m not sure, but there’s an emotional comfort in staying put.” – Becky Bohrer in Juneau, Alaska
Located at the border of Washington state and British Columbia, the community of Point Roberts is feeling the tension around tariffs, hoping for leniency from Canada. This U.S. exclave, spanning 5 square miles, relies on Canada for water and electricity since its land connection is through Canadian territory, necessitating a 20-mile detour to reach mainland Washington state. Real estate agent Wayne Lyle, a dual U.S.-Canadian citizen, shared that some of the approximately 1,000 residents are petitioning British Columbia’s premier for tariff exemptions, emphasizing their strong ties to Canada and the need for understanding amid potential trade disputes. Lyle, serving as the president of the Point Roberts Chamber of Commerce, expressed concerns that Canadian visitors might avoid the area as a form of protest, urging against negative repercussions on the community. – Sally Ho in Seattle
The 545-mile border between Montana and Alberta may seem quiet at its checkpoints, yet beneath the surface lies a critical flow of Canadian crude oil and natural gas worth around $5 billion annually. This vital energy supply crosses through Montana, a pivotal point due to its unique river system draining into various water bodies. Dallas Scholes, from Par Pacific, highlighted the significance of Canadian resources for the U.S. oil industry, especially in Montana where residents heavily rely on energy during cold seasons and for long-distance travel. Concerns arise over potential tariffs impacting consumers and agriculture, with fears of retaliatory measures affecting trade relations. – Matthew Brown in Billings, Mont.
Detroit and Windsor are separated by the Detroit River, offering proximity that allows Detroiters to catch scents from Windsor and sounds from the nearby distillery.
Detroit’s outdoor concert venues offer a unique experience, but the real heart of the city lies in its manufacturing prowess. The Ambassador Bridge, a 1.4-mile-long span connecting Detroit and Windsor, is the busiest international crossing in North America. Every day, $323 million worth of goods flow between these automotive capitals, highlighting the close ties between the two countries.
The auto industry in the U.S., Canada, and Mexico has long operated as a unified entity, with parts and vehicles crisscrossing borders seamlessly. However, recent tariffs have raised concerns among industry leaders like Pat D’Eramo, CEO of automotive supplier Martinrea. The uncertainty surrounding tariffs on steel and aluminum, as well as the potential for double taxation on parts crossing borders multiple times, has created disruption and confusion in the supply chain.
D’Eramo emphasizes the importance of efficiency and cost reduction in manufacturing, arguing that tariffs will only serve to make vehicles more expensive for consumers. While the desire to strengthen U.S. manufacturing is understandable, he believes that the focus should be on improving processes rather than imposing barriers.
In Buffalo, New York, the close relationship with Canada is evident in the thriving craft beer industry. Canadian imports of aluminum cans and malted grain play a crucial role in supporting local breweries. However, the looming threat of tariffs on Canadian goods has raised concerns among businesses, who fear the impact on prices and availability of key ingredients.
Similarly, in Cutler, Maine, lobsterman John Drouin has relied on the waters of the Atlantic for decades to sustain his livelihood. The potential consequences of trade disputes and tariffs could have far-reaching effects on industries like fishing, where international cooperation is essential for success.
In these uncertain times, the need for open communication and cooperation between nations is paramount to ensuring the continued prosperity of industries that rely on cross-border trade and collaboration.
The waters known as the “grey zone” straddle the U.S.-Canada border. The relationship between American and Canadian fishermen can sometimes be fraught, but harvesters on both sides of the border know they depend on each other, Drouin said. Maine fishermen catch millions of pounds of lobsters every year, but much of the processing capacity for the valuable crustaceans is in Canada. If Trump follows through with the threatened tariffs next week, lobsters sent to Canada for processing would be subject to customs duties when they return to the U.S. to go to market. Drouin fears what will happen to the lobster industry if the trade dispute persists and Canada enacts a retaliatory tariff on lobsters. “As the price goes up for the consumer, there comes a point where it just doesn’t become palatable for them to purchase it,” Drouin said. Drouin, 60, fishes out of Cutler, Maine, and sees Grand Manan Island, an island in the Bay of Fundy that is part of the province of New Brunswick, when he takes his boat out. He described his business as “right smack on the Canadian border” in terms of both economics and geography. He described himself as a fan of Trump’s first term who is “not overly thrilled with what he’s been doing here.” And he said he’s concerned his home state could ultimately be hurt by the tariffs if the president isn’t mindful of border industries such as his. “The rhetoric is a bit much, what’s taking place,” Drouin said. – Patrick Whittle in Scarborough, Maine
