Impact of Tariffs and Border Traffic on North Country Businesses

The imposition of tariffs by President Donald Trump and the resulting decrease in Canadian border traffic have significantly impacted businesses in Northern New York. Kelsey Carroll, co-owner of the Portside Restaurant in Westport, reported a dramatic decline in Canadian customers, noting that only one or two Canadian tourists visited her establishment this summer, a stark contrast to previous years. Statistics Canada revealed a nearly 37% drop in Canadian residents making return trips to the U.S. by car in July compared to the previous year. Carroll attributes this decline to the strained U.S.-Canada relations and the tariffs, which have also increased costs for ingredients at her restaurant.

North Country Public RadioTrump’s tariff policies expected to unequally affect lower-income householdsThe Straits TimesChina’s exports to United States drop 15%, provinces hit unevenly by tariffsHow Local Businesses Are Navigating an Uncertain Economy

Tim Branfalt, owner of Black Dog Records and Nostalgia in Bloomingdale, echoed similar sentiments, stating that his business experienced a 50% drop in sales compared to previous years due to the absence of Canadian visitors. He noted that tariffs have led to increased prices for new records and used electronics, making it difficult for him to maintain his inventory. The tariffs have also affected his ability to source niche vinyl records from European labels, which have ceased shipping to the U.S.

North Country Public Radio

The impact of tariffs extends beyond tourism and retail. Shelby Connelly, owner of Apothecary Chocolates in Colton, closed her business primarily due to the rising costs of chocolate ingredients, which surged from $90 to $250 per 22-pound bag due to tariff-induced market uncertainty. Connelly highlighted that the fear surrounding tariffs led to significant price hikes, ultimately forcing her to cease operations.

North Country Public Radio

Linda D’Arco, owner of Ampersand Bulb Co. in Au Sable Forks, reported a decline in sales and workforce due to tariffs on flower bulbs imported from the Netherlands. She described the tariffs as "highway robbery" of American farmers, as they have led to canceled orders and unsustainable pricing for flower growers. D’Arco emphasized that the uncertainty surrounding tariffs has discouraged many flower farmers from continuing their operations, which could ultimately lead to a reliance on imported products.

North Country Public Radio

Critics argue that Trump's tariff policies disproportionately affect lower-income households. According to the Budget Lab at Yale University, these tariffs could cost the average consumer an additional $2,300 in 2025, with lower-income households facing an additional burden of $1,300. The regressive nature of tariffs means that lower-income families, who spend a larger portion of their income on essential goods, are more adversely affected by rising prices.

Trump’s tariff policies expected to unequally affect lower-income householdsThe Straits TimesNorth Country Public RadioHow Local Businesses Are Navigating an Uncertain EconomyChina’s exports to United States drop 15%, provinces hit unevenly by tariffs

The ongoing trade tensions and tariff policies have created a challenging environment for North Country businesses, leading to reduced sales, increased costs, and closures. As local entrepreneurs navigate these economic uncertainties, the long-term implications for the region's economy remain to be seen. The interplay between tariffs, consumer behavior, and international relations will continue to shape the landscape for businesses in Northern New York.

Trump’s tariff policies expected to unequally affect lower-income households