Mayors of border cities cry out to feds for funding, support as tariff war with U.S. takes its toll

A group of mayors from cities and towns hugging the Canada-U.S. border is calling on the Canadian federal government for help as cross-border political tensions and tariff uncertainties create hardship for their communities.

The eight mayors comprising the Border Mayors Alliance sounded the alarm at a national online news conference on Friday. They say their local economies, jobs and businesses are at risk, especially since the tariff war with the U.S. has come on heels of the pandemic.

"We've been dog paddling now for the last four or five years because of COVID, and this [U.S. tariffs] is the last thing we needed to happen," said Mike Bradley, mayor of Sarnia, Ont. "We're feeling the pain and we're on the front line … so we do not want to be left behind." 

Duty-free stores face 'literal demise'

The mayors say their communities rely on cross-border businesses such as duty-free stores to bolster their economies.

Barbara Barrett, the executive director of the Frontier Duty Free Association (FDFA), says duty-free stores, which rely completely on cross-border travel, now face "literal demise" amid U.S. President Donald Trump's threatened and imposed tariffs on Canadian goods.

Dave Carlson, reeve of the Manitoba municipality of Emerson-Franklin, says the duty-free store in Emerson is a vital cog in the local economy and employs more than 20 people, one of the biggest employers in the town of about 675 people, according to 2016 Census data.. 

Carlson believes the cross-country messaging to "Buy Canadian" is hurting the alliance's communities.

"We're hoping that the federal government can, sooner than later, get to the bargaining table and get this resolved, because this has gone far too long with rhetoric saying 'Don't shop U.S., don't go to the United States,' Carlson said.

"That affects a lot of jobs, a lot of businesses and a lot of communities, so our hopes are that we can get past this sooner than later."

There are 32 duty-free stores across Canada, operating in seven provinces, according to a 2024 report by the FDFA.

Duty-free stores represent approximately $35 million a year in federal, provincial and local taxes, with operators investing a total of more than $60 million in border communities, the report says.

Cameron Bissonnette, a second-generation duty-free shop owner in Osoyoos, B.C., teared up while explaining the dire situation of his business during the current climate. He says he lost $67 one day last week, meaning no transactions were carried out except for a refund.

"I haven't collected a paycheque from my business since June of last year. Now it's getting to the point where I'm wondering how much longer can I pay my staff," Bissonette said.

Trina Jones, the mayor of Woodstock, N.B., says the provinces and Ottawa need to "act quickly and smartly" to help businesses in border communities such as hers before it's too late.