Border Business Slumps as Tariffs Loom

Duty-free shop owner fears store closures amid cross-border traffic decline.

A duty-free shop at the Pacific Highway border crossing is struggling with significantly reduced customer traffic; the owner is worried that new tariffs could further devastate business. The situation highlights the precarious state of businesses reliant on cross-border activity.

Sales Plunge at West Coast Duty Free

On a recent Friday afternoon, **Gary Holowaychuk**, one of the owners of West Coast Duty Free, noted only four customers in the store. He told Global News that they should have “40 or 50 customers.”

Sales have plummeted, with business down “70 per cent to 80 per cent from where we should be,” **Holowaychuk** said. The owner is struggling to retain employees during this downturn.

**Holowaychuk** described the current business climate as “pretty dismal.” While January and February saw sales up 30 to 40 percent compared to 2024, March brought a 25 percent drop, followed by a further decline of 45 to 55 percent.

According to the U.S. Chamber of Commerce, cross-border trade between the U.S. and Canada supports nearly 9 million jobs and roughly $718 billion in goods and services annually (U.S. Chamber of Commerce).

Trump’s Tariff Threat Looms

**Holowaychuk** expressed hope for increased summer travel in July and August. However, he’s worried about **Donald Trump**’s recent announcement of a 35 per cent tariff on Canadian goods, set to take effect on Aug. 1.

“It’s like another gut punch, every, almost every time he opens up and says anything, we notice it right away,” **Holowaychuk** stated.

The business owner feels particularly vulnerable: “We’re like, we’re on the front line. We were the first hit when he got office, we were the deepest hit, much like COVID when they closed the borders. We were the first and the hardest hit.”

Cross-Border Travel Still Declining

Statistics Canada data indicates a continued decline in cross-border travel. The number of Canadians crossing the border by car in June decreased by 33 percent compared to June 2024.

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Seeking Government Support

**Holowaychuk** is appealing to the federal government for assistance and requesting legislative changes to enhance competitiveness. “We’re looking for anything that they can do to help us weather this storm,” he said, noting the risk of several border stores closing if the summer season is poor.

The business reportedly lost $100,000 last month. The Ministry of Finance stated that it is prepared to support businesses and workers but provided no specific details.