Feb 21, 2025
A British Columbia border shop is reeling from an 80% drop in business as trade tensions and shifting consumer loyalties shake its foundation.
The owner, shocked by the abrupt decline, called the situation “unbelievable” and worries about the store’s future.
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“This has been our biggest issue for over 10 years,” Peter Raju, president and owner of Peace Arch Duty Free, told Retail Insider.
“Our business is down substantially. We’ve had to reduce staffing and if things don’t improve, we’ll have to close on weekdays.”
A perfect storm of trade tensions and nationalism
The shop’s dramatic downturn coincides with US President Donald Trump’s recent tariff threats.
The proposed 25% tariff on Canadian goods has strained economic relations between the two nations, forcing many businesses to recalibrate.
In response, a strong “Buy Canadian” movement has gained traction, encouraging consumers to prioritize domestic products over American imports.
“This hit us like a ton of bricks,” the store owner said. “We’ve seen dips before, but nothing like this. Our customers are either staying home or choosing Canadian alternatives.”
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The ‘Buy Canadian’ movement gains momentum
According to a Reuters report, Canadian Tire has ramped up efforts to reduce reliance on US suppliers, bracing for possible long-term tariff impacts. Similarly, other retailers are strategizing ways to mitigate disruptions in supply chains.
Meanwhile, a Time Magazine report highlights Canada’s long-standing economic reliance on US imports, suggesting that while the ‘Buy Canadian’ movement is strong now, it remains to be seen whether it will permanently shift consumer behaviour.
A long-term trend or temporary blip?
The big question remains: Is this downturn a short-term reaction or a lasting shift? Historical precedents show that nationalistic buying habits often surge in response to economic or political events but tend to fade once conditions stabilize.
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However, if tariffs become a long-term reality, Canadian businesses may permanently alter sourcing strategies, reinforcing a new consumer pattern.
A Business Insider report notes that delays in closing US tax loopholes, such as the de minimis rule, have further complicated cross-border commerce, making it harder for Canadian retailers to compete with American e-commerce giants.
For border businesses like this BC shop, adaptation may be the only way forward. As Peace Arch Duty Free looks at bringing in more Canadian products, Raju admits that if the trend continues the company will have no choice but to adjust.
Whether this decline marks a long-term economic shift or a temporary consumer reaction remains to be seen, but one thing is clear: border businesses are facing some of the toughest times in recent memory.
Many Canadian consumers are actively seeking out locally produced goods to reduce reliance on US imports. Retailers have responded by highlighting Canadian-made products in their stores.
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For instance, independent grocers have begun labeling domestic products with shelf signs to help customers easily identify Canadian goods.
Major grocery chains like Loblaw Companies Ltd. have announced plans to secure more food grown and made in Canada, while e-commerce platforms such as Shopify are encouraging consumers to buy Canadian through new features on their apps, according to a CP24 story.
The sustainability of the 'Buy Canadian' movement hinges on several factors. Prolonged trade tensions and persistent tariff threats may reinforce nationalistic purchasing behaviours.
However, as global supply chains are deeply interconnected, sustained protectionism could disrupt markets and lead to unintended economic consequences.
The Fraser Institute cautions that escalating protectionist policies might provoke retaliatory measures, potentially harming the very industries they aim to protect.
The "Buy Canadian" initiative reflects a collective effort to bolster the domestic economy and assert national identity amidst external economic pressures.
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With 40 years of experience as a daily newspaper writer, columnist and editor, Mario Toneguzzi is passionate about bringing stories to life. After working for the Calgary Herald for 35 years in various positions such as sports, crime, politics, health, faith, city, breaking news and business, Mario shows that he is committed to finding a message that speaks to the reader. With a nationally recognized social media presence, Mario Toneguzzi works as a freelance writer and consultant in communications and media relations/training.
