DETROIT — At the U.S. Embassy in Ottawa, a wall bears a quote from former President Ronald Reagan: “Let the 5,000-mile border between Canada and the United States stand as a symbol for the future… Let it forever be not a point of division but a meeting place between our great and true friends.” Upon signing a 1988 free trade agreement with Canada, Reagan emphasized a harmonious future. However, the current scenario presents quite a contrast. On the horizon is President Donald Trump’s plan to enforce a 25% tariff on most Canadian goods and a 10% tariff on Canadian oil and gas imports. Mexico is facing a similar situation with a 25% tariff.
In reaction, Canada has vowed retaliation, proposing a 25% tariff on numerous American goods, such as wine, cigarettes, and shotguns. The deployment of these tariffs has sparked a wave of emotions along the extensive U.S.-Canada border, impacting communities where lives and industries are closely interwoven. Canadian ranchers rely heavily on U.S. companies for farming equipment, with cattle and hogs frequently exported to American processors. Meanwhile, U.S. consumers enjoy gallons of Canadian maple syrup annually, and their pets feed on U.S.-produced pet food.
The trade dispute is expected to have extensive repercussions, potentially causing price hikes, increased paperwork, and longer waiting times at border crossings for both individuals and goods, as stated by Laurie Trautman, director of the Border Policy Research Institute at Western Washington University. According to Trautman, the very cross-border relationships that industries depend on could face severe disturbances. Additionally, the mere mention of tariffs might have already led to irreversible damages. Canadian Prime Minister Justin Trudeau has urged citizens to prioritize Canadian products and vacations at home.
The intricate dynamics in various locations along the border reveal unique stories. In Skagway, Alaska, a historical connection with Yukon, Canada, is cherished due to trade routes that date back to the Klondike gold rush era. Around one million cruise ship passengers visit Skagway annually, drawn by its rich history, yet the connection to the Yukon remains vital. More so, Skagway residents often venture to Whitehorse, Canada, for diverse reasons, ranging from shopping to healthcare.
However, Orion Hanson, a Skagway Assembly member, expresses concern about potential tariff-induced price increases for essential building materials, underscoring that the already high cost of living in remote areas could further soar. Inhabitants of both Whitehorse and Skagway are apprehensive about the potential implications for community relations and price fluctuations. A resident of Whitehorse shared concerns that looming tariffs, if they come to fruition, could foster uncomfortable feelings and resentment. Such sentiments might deter him from American visits, barring Alaska-border towns.
Meanwhile, in Point Roberts, Washington, a community uniquely nestled between Washington state and British Columbia, fears abound over the impending tariffs. Point Roberts, a 5-square-mile U.S. exclave, heavily depends on Canadian resources for water and electricity. Residents, many of whom hold dual citizenship, are appealing for leniency from Canadian authorities to counter expected retaliatory tariffs. The hope is that Point Roberts’ distinctive geographic and cultural linkage to Canada might earn it some relief. Nonetheless, concerns persist about waning Canadian visitors, who could cease flocking to this popular summer getaway.
In contrast, Montana’s extensive 545-mile land border with Canada, home to some of the quietest international crossings, camouflages its significant economic role. Undetected pipelines beneath the expansive barley fields transport Canadian crude oil and natural gas worth about $5 billion annually, primarily sourced from Alberta. Montana stands as a continental juncture, supplying refineries around Billings and other U.S. locations. Industry experts warn that tariffs on oil and gas industries can introduce consumer challenges, resonating acutely among Montana’s significant energy consumers.
The automotive nexus between Detroit and Windsor showcases an exemplary representation of cross-border industrial cooperation, with the Ambassador Bridge facilitating an immense exchange of goods daily. Integration in auto manufacturing has allowed seamless operations involving multiple border crossings for parts and assemblies. However, proposed tariffs could impose disruptions and increased costs, complicating established processes. Industry stakeholders lament potential expenses and inefficiencies resulting from tariff enforcement.
In Buffalo, New York, another border town, the brewing industry feels the potential sting of impending tariffs on Canada and aluminum. Due to Western New York’s abundant craft breweries, significant reliance exists on Canadian resources for inputs and consumers. Concerns rise over diminishing Canadian patronage owing to negative sentiments stemming from tariffs and political rhetoric. For businesses like Resurgence Brewing Co., dependent on Canadian malted grains, elevated prices and potential consumer alienation present daunting challenges.
Finally, in Cutler, Maine, the local lobstering industry, intricately poised at the U.S.-Canada border, braces for impact. Lobster exports require Canadian processing capabilities before returning to U.S. markets. Possible tariffs on these lobsters, aligned with any Canadian retaliatory measures, threaten to jeopardize industry profitability. Lobsterman John Drouin echoes industry-wide concerns that unmitigated trade tensions could heighten consumer prices to unsustainable levels, jeopardizing livelihoods amidst geopolitical maneuvers.
