Duty-free shop owners are feeling the negative impacts of the U.S. trade war, with a significant decrease in business reported at two border crossings in southwestern Ontario. Sales at these shops have dropped by around 30 percent compared to the previous year. One of the affected shops is located at the Windsor-Detroit tunnel, where the owner expressed concerns about the upcoming slow season in January.
Abe Taqtaq, the shop owner, mentioned the possibility of having to make tough decisions if the situation persists. Despite being a family business, he emphasized the challenges ahead and his worries about the future months. Taqtaq remains hopeful for a business turnaround but acknowledges the reluctance of people to travel to the U.S. He urged border crossers to consider visiting his store.
Decrease in U.S.-bound Vehicle Traffic
Canadian residents’ return trips to the U.S. via road declined by 30.2 percent in October, as reported by Statistics Canada. This marks a continuous year-over-year decrease of over 30 percent since March. Notably, passenger vehicle traffic from Windsor to Detroit dropped by 5.9 percent from January 1 to November 30 compared to the same period last year, based on data from U.S. Customs and Border Protection.
A similar trend is observed in Point Edward (Sarnia) to Port Huron, where passenger vehicle traffic decreased by approximately 27 percent during the same timeframe. Tania Lee, co-owner of Blue Water Duty Free in Sarnia, echoed the sales decline experienced by duty-free shops in Windsor.
According to Lee, the nationwide impact on duty-free shops is significant, with closures and financial struggles being commonplace. The Frontier Duty Free Association, led by Lee, is advocating for federal assistance through repayable loans for struggling shops. They are also seeking relief from regulatory burdens that hinder competition and impose unnecessary compliance requirements.
Lee highlighted the urgency of the situation, emphasizing the necessity for support from the government to ensure the survival of these businesses. She stressed the association’s determination to fight for assistance, expressing hope for a positive outcome through engagement with policymakers in Ottawa.