As the peak tourism season approaches, Boundary County businesses have already started to feel the impact of Canadian shoppers staying home in recent months. 

“We’re seeing a sharp decline in Canadian traffic,” said Tom Turpin, CEO of the Kootenai Tribal Development Corporation. “The Canadian market is huge for us, and for a lot of businesses in town.” 

February saw the first dip in Canadian travelers through North Idaho ports of entry since COVID-19, with about 2,700 fewer travelers crossing at Eastport and Porthill compared to February 2024, according to U.S. Customs and Border Protection data. Travel through the two ports had increased by over 11% from October to January but dropped by more than 13% in February, when U.S.-Canada trade relations faltered.

On Feb. 1, the U.S. issued an executive order imposing a 25% tariff on non-energy-related Canadian imports. However, the tariff was postponed for one month on Feb. 3 after the two countries reached a border security agreement.  

Meanwhile, in a televised speech on Feb. 1, former Canadian Prime Minister Justin Trudeau urged Canadians to reduce their reliance on American goods. Subsequently, Canadian traffic in Boundary County began to decline, even though the tariffs and counter-tariffs did not take effect until March 4. 

“Now is the time to choose Canada,” Trudeau said in his Feb. 1 speech broadcasted by LiveNOW from FOX. “It might mean checking the labels at the supermarket and picking Candian-made products. It might mean opting for Candian rye over Kentucky bourbon, or foregoing Florida orange juice altogether. It might mean changing your summer vacation plans to stay here in Canada.” 

Canadians deterred from crossing the border with U.S. goods

    Bonners Ferry is about a 30-mile drive from Canada.

Since the speech, Boundary County businesses have felt the effects of a decline in Canadian customers, with impacts ranging from minimal to the threat of potential bankruptcy. 

On the unaffected side of the spectrum, businesses such as Woody’s Gun and Pawn in Bonners Ferry have not discerned a difference because they appeal to mainly American customers interested in firearm-related goods. 

Woody’s owner Kyle Watts said Canadian customers will typically come in only to browse because Canada does not have the same gun-ownership protections as the U.S. 

On the other end, Jake’s Landing – a gas, grocery and postal service near the border in Porthill – almost exclusively services Canadian customers, because food, gas and mail are much more affordable on the U.S. side of the border. But regular customers have dwindled since February, said owner Lars Jacobson. 

“During COVID we almost went bankrupt, and the effects have lingered,” he said. “We got about 50 percent of our customers back last summer, but now we’re back down to 25 percent. We can’t pay the bills if this continues. I don’t even know how to explain how tough these last five years have been.” 

A sizeable portion of sales at Jake’s Landing comes from certain grocery products, such as beer and dairy, that used to be significantly cheaper to buy in the U.S. One Canadian customer said the $10 upcharge for a six pack of beer, caused by provincial and federal taxes tacked on with the tariff, made the purchase impractical. 

“We get stung with the tariff on top of the price, and then we get taxed on top of that,” said another Canadian customer at Jake’s Landing filling up on gas. “It’s almost double the price of whatever you buy down there.” 

Canadian shoppers also feel less inclined to buy groceries in Boundary County because of the “hassle,” as one Canadian Super 1 Foods shopper put it, of border patrol inspecting the contents of a grocery bag item by item. 

For shops like 3 Mile Antique Mall, the peak season is just about to kick off, so the economic impact remains unknown. Owner Mike McGinnis said, however, that the decline in Canadian customers at his store has persisted since COVID, citing the decreased spending power of the Canadian dollar, as well. 

Local entertainment takes a hit 

Canadian taxes and tariffs don’t apply to restaurants and entertainment, because those businesses offer perishable goods that aren’t brought back into Canada. But even so, Canadians have been deterred from spending on leisure. 

“Lots of people have a hate out for the States right now,” said a Canadian customer at Jake’s Landing. “To me personally, it makes no difference at all.” 

This March, the number of Canadians booking overnight stays at the Kootenai River Inn dipped by 43 percent compared to last March, Turpin said, adding that the impact extends to the restaurant and casino. 

A Mugsy’s Tavern and Grill bartender also said she has seen a decline recently in Canadian customers, typically identifiable when they pay with Canadian cards. She said that while Mugsy’s has grown busier with travelers each year, this change has been noticeable. 

“Our relationship with Canadians is very good,” Turpin said. “They love to come down to Bonners Ferry. If they have any economic reasons or personal feelings that keep them away, hopefully those will subside.” 

The full scope of the tense trade relations’ impact will be measured after tourism season this summer, when historically Boundary County has had the most Canadian traffic. Business owners who have already experienced an impact say that the key is to remain neighborly.  

“We tell a lot of our Canadian customers we’re all part of the same valley,” said Landen Jacobson, Lars’ son, of Jake’s Landing. “We might have this line that divides us as nations, but we’re all the same.” 

A potential obstacle in the effort to remain welcoming of Canadians in Boundary County is Idaho House Bill 96, which would ban the county from flying the Canadian flag on government property. The bill was filed for a third reading in the Senate on March 24. 

“I like that we recognize our Canadian brethren,” Turpin said. “We are two of the closest countries in the world. I think most of our community appreciates that we fly the Canadian flag.”