Nestled along the U.S.-Canada border, many small towns once thrived on cross-border trade, tourism, and a deep-rooted economic partnership with their northern neighbors. But in the wake of former President Donald Trump’s trade war with Canada — marked by tariffs, retaliations, and an “America First” agenda — these communities have been caught in the economic crossfire, feeling repercussions that have outlasted his presidency.
A Border Economy in Decline
In towns like International Falls, Minnesota; Derby Line, Vermont; and Blaine, Washington, the livelihoods of many depend on a steady flow of goods, services, and people across the border. When Trump imposed tariffs on Canadian steel and aluminum in 2018 — citing national security concerns — Canada responded with duties on American goods ranging from maple syrup to lawnmowers.
For small businesses and farmers in border towns, this tit-for-tat approach disrupted long-standing trade relationships.
“We used to send 60% of our lumber across to Ontario,” said Carl Simmons, owner of a small sawmill in northern Maine. “Once the tariffs hit, our buyers dried up overnight. We had to lay off half the crew.”
Fallout for Farmers and Manufacturers
Midwestern dairy and grain farmers also saw exports to Canada plunge as Canadian importers turned to Europe and other suppliers. According to the U.S. Chamber of Commerce, rural counties near the border experienced some of the steepest export declines during the height of the trade war.
In Sault Ste. Marie, Michigan, a family-owned tractor parts manufacturer that once shipped components to Quebec saw its Canadian orders drop by 40%. “It wasn’t just about price — it was about uncertainty,” said co-owner Linda Walsh. “They didn’t know what tariff would come next, and neither did we.”
Tourism Takes a Hit
Tourism-dependent towns were also affected. Before the pandemic, Canadians made more than 20 million visits annually to the U.S., much of it to shop or vacation in border towns. The combination of trade tensions and COVID-era travel restrictions devastated this stream of revenue.
“I had to close my B&B for nearly a year,” said Diane Lefevre, who runs a guesthouse in Niagara Falls, New York. “Even when the border reopened, Canadian visitors were hesitant. There was a feeling that Americans didn’t want them here anymore.”
Lingering Impact
Although the Biden administration rolled back many of the tariffs and sought to repair U.S.-Canada relations, the effects have been slow to reverse. Supply chains remain altered, some businesses never reopened, and mistrust lingers.
Economists say the real cost of the trade war wasn’t just economic — it was the disruption of decades of goodwill and cooperation. “The U.S.-Canada relationship was the envy of the world,” said Laura Thompson, a trade policy analyst at the Wilson Center. “It’s taken a hit, and border communities bore the brunt of it.”
Looking Ahead
Some towns are adapting. Regional economic development groups are working to rebuild cross-border ties, promoting trade fairs and cooperative projects. But recovery is uneven.
Back in International Falls, Simmons is cautiously optimistic. “We’re talking with some new buyers in Ontario again,” he said. “But it’ll take time to earn their trust back. Trade wars don’t have clear winners — but small towns like ours always seem to lose.”
