In the heart of the summer holidays, the out-of-tax shops along the Canadian-American border are slowing down. Since the start of the trade war launched by President Trump, tourist passages – Canadians and Americans – have been rarer. A blow for these businesses whose survival depends entirely on the cross-border back and forth.
“It’s empty … It’s sad how empty it is,” says Philippe Bachand with disarray, pointing to the big parking lot in front of his boutique outside Taxes in Philipsburg, in Estrie.
When passing the Duty Thursday morning, only five cars were parked in front of the building; Four of them belonged to employees.
Inside, it was flat calm. Apart from workers, a man in sixties strolled on the shelves looking for a southern southern southern border. In an hour, barely a handful of customers crossed the doors of the store.
The neighboring customs position of Saint-Armand/Philipsburg was also not very busy. Some trucks and rare cars, mainly American, crossed during our visit. However, it is one of the busiest customs posts in Quebec. It is on the road leading to Burlington, Vermont, or Boston, in Massachusetts.
“In summer, parking is usually full,” says the co -owner of the off -tax store. Whether you are a Tuesday, a Thursday or a Sunday, there are always people. For us, this is the big season, this is where we make the most sales. »»
Less travelers
The customs duties imposed on Canadian products by the American president, Donald Trump, have completely changed the situation. Since February, cross -border traffic has been in free fall. Many Canadians have decided to boycott the United States and our southern neighbors are also numerous to visit us.
The most recent data in the customs and border protection of the United States (CBP), published this week, confirm this trend. In June, the number of travelers who went by car from Canada to the United States was 3.2 million compared to 4.2 million in June of the previous year, a drop of 24.5 %.
Statistics Canada figures show a 10.5 % drop in the number of American travelers who entered Canada in June (1.4 million) compared to such a date (1.6 million). And if we compare the starters of 2025 to those of 2019 – before the pandemic – the decrease is 17.5 %.
Decrease sales
Inevitably, this drop in traffic at the border is affected on the turnover of shops outside neighboring taxes. In Philipsburg, Mr. Bachand has recorded a drop of approximately 30 % of his sales since February.
But there is no question for the moment to dismiss their staff. “It’s not downtown Montreal here,” he says. People are not an hour to work with us. The job basin is not very large. The people we have, they have been there for a long time, they are competent, we want to keep them. »»
It’s empty … it’s sad how empty it is.
To balance his accounts, he has not replaced retirements or sick leave. “In summer, we engage between 15 to 20 more students, usually. It was not necessary this year, ”he adds. And in stores, he limits orders to avoid losses.
“It’s a blow, we were just recovering from the pandemic,” deplores Mr. Bachand, recalling in passing the border restrictions applied for long months from March 2020. “Since 2019, we have gone from 50 employees to 22. We have never found the situation before. »»
Shops in danger
And again, he considers himself less to complain than others of his colleagues. Some smaller taxes have lost more than 50 % of their turnover, notes the one who is also vice-president of the Association border excluding tax (AFHT).
The owner of the Woodstock Duty Free Shop in Belleville, New Brunswick, announced this week that he would close shop by the end of the summer, after having sold his inventory. The Boutique Boutique de Beauce, not far from Saint-Théophile, and that of Osoyoos, in British Columbia, also find it difficult to reach both ends.
“No one escapes the crisis, no one is immune. Some fall just faster than others, ”comments Mr. Bachand, hoping not to close the family business created by his mother in 1988.
Call for help
Its association, which brings together around thirty shops in the country, has multiplied the calls for help in Ottawa.
AFHT notably requests emergency aid to help shops outside the survival and maintain their staff in place. Recall that these businesses cannot turn to delivery or online sale to adapt to the situation.
“There is an emergency,” insists Mr. Bachand, stressing that off -tax shops represent a window for Quebec products – and Canada – which are found on their tablets. These businesses also constitute pillars of the local economy in border rural areas.
“While being engaged in complex negotiations on a new economic and security partnership with the United States, the government is carefully monitored the repercussions throughout the economy and will not hesitate to propose measures to support workers and businesses, if necessary,” the Ministry of Finance replied by email.
“By what things move, other businesses will have time to close,” says Philippe Bachand.
