Border shop sees 80% sales drop amid tariffs and ‘Buy Canadian’ movement — owner says they could go under 'any day.' Is this a long-term trend or a quick blip?

A perfect storm of trade tensions and nationalism

The shop’s dramatic downturn coincides with U.S. President Donald Trump’s recent tariffs and Canadian Prime Minister Justin Trudeau's reciprocal tariffs.

These include American levies of up to 25% on most Canadian goods (some of which President Trump has since paused, but may reverse at any time), as well as the retaliatory tariffs and markups put in place by Canada’s federal and provincial governments.

The resulting strained economic relations between the two nations are forcing many businesses to recalibrate on both sides of the border.

“This hit us like a ton of bricks,” the store owner said. “We’ve seen dips before, but nothing like this. Our customers are either staying home or choosing Canadian alternatives.”

When asked during an interview how much longer Raju sees the business surviving, he said: "Until the bank calls me, any day."

Raju has also explained that these days border line-ups are often sparse, as provincial goverments urge residents to reconsider travel plans to the U.S. "We are averaging about eight or nine customers a day. Can you believe that for a store our size?"

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

The ‘Buy Canadian’ movement gains momentum

In response to the tariffs, a strong “Buy Canadian” movement has gained traction in Canada, encouraging consumers to prioritize domestic products over American imports — imports such as those currently sitting on Raju’s shelves.

According to a Reuters report, Canadian retailer Canadian Tire has ramped up efforts to reduce reliance on U.S. suppliers, bracing for possible long-term tariff impacts. Similarly, other retailers are strategizing ways to mitigate disruptions in supply chains.

And many Canadian consumers are actively seeking out locally-produced goods to reduce reliance on U.S. imports. Retailers have responded by highlighting Canadian-made products in their stores. For instance, independent grocers have begun labeling domestic products with shelf signs to help customers easily identify Canadian goods.

Major Canadian grocery chains have announced plans to secure more food grown and made in Canada, while e-commerce platforms such as Shopify are encouraging consumers to buy Canadian through new features on their apps.

Businesses are bracing

A Business Insider report notes that delays in closing U.S. tax loopholes, such as the $800 de minimis rule, have further complicated cross-border commerce, continuing to make it hard for Canadian retailers to compete with American e-commerce giants.

For border businesses like this BC shop, adaptation may be the only way forward as they face some of the toughest times in recent memory. While Peace Arch Duty Free is looking at bringing in more Canadian products, Raju admits that if the trend continues, the company will have no choice but to adjust.

However, while the ‘Buy Canadian’ movement is strong now, the long-term impact on consumer behavior is not yet clear because of Canada’s long-standing economic reliance on U.S. imports.

The big question remains: Is this downturn a short-term reaction or a lasting shift? Historical precedents show that nationalistic buying habits often surge in response to economic or political events but tend to fade once conditions stabilize.

However, if tariffs become a long-term reality, Canadian businesses may permanently alter sourcing strategies, reinforcing a new consumer pattern.

On the flip side of this coin, the sustainability of the 'Buy Canadian' movement too hinges on several factors. Prolonged trade tensions and persistent tariff threats may reinforce nationalistic purchasing behaviors.

However, as global supply chains are deeply interconnected, sustained protectionism could also disrupt markets and lead to unintended economic consequences on both sides of the border.

The "Buy Canadian" initiative reflects a collective effort to bolster Canada’s domestic economy and assert national identity amidst external economic pressures, but not without cost to local businesses like Raju’s. On Canada's part, the federal government is launching an aid package geared towards businesses hit by the tariffs.