A unique U.S. exclave, Point Roberts, is feeling the harsh effects of ongoing trade disputes between the United States and Canada. As tariffs disrupt cross-border relations, this small waterfront town, heavily reliant on Canadian visitors and commerce, faces an uncertain future. Business owners, residents, and local officials are sounding the alarm, fearing that without Canadian support, the town could face economic collapse.
A Community on the Brink
Point Roberts, a five-square-mile peninsula cut off from the U.S. mainland by a historical border agreement in 1846, is home to around 1,000 permanent residents. Its only land connection is through Canada, requiring a border crossing and a 25-mile drive north to reach Vancouver, British Columbia, or two border crossings to re-enter the U.S. mainland.
For years, the town thrived as a weekend retreat for Canadians and a haven for retirees. However, businesses in Point Roberts are now reporting significant declines in revenue as Canadian visitors stay away due to tariffs and border uncertainties.
“This was really devastating,” said Tamra Hansen, owner of two local restaurants. “If we don’t get support from Canadians, this town will die.”
Economic Fallout from Tariffs
Trade tensions escalated as the U.S. government imposed new tariffs on Canadian imports, leading to retaliatory measures from Canada. As a result, consumer confidence in cross-border shopping and tourism has plummeted, directly impacting Point Roberts’ economy.
“We rely on Canadian customers,” said Larry Musselwhite, owner of Larry’s Liquor Locker, who reported a 40% drop in sales. “This is because of our elected president, who really doesn’t care about the common man and the struggles we go through.”
Point Roberts’ economy is driven primarily by tourism and retail, with Canadian property owners making up the majority of vacation homeowners. With a significant decline in visitors, businesses that once flourished are now struggling to survive.
Border Uncertainty Creates Confusion
Frequent changes in tariff regulations have left residents and businesses in a state of uncertainty. Border policies shift unexpectedly, making it difficult for people who cross the border daily to plan their purchases or travel routines.
“Nobody is sure of the rules on any given day,” said Hugh Wilson, a local real estate agent managing several Airbnb properties. “The border agents do their best to keep up, but it’s a constantly changing situation.”
Many residents worry that if tensions worsen, Canada could take more drastic measures, such as cutting off water and electricity supplies to Point Roberts, which currently rely on Canadian resources.
“If it gets more brutal, they can cut off the water or the power,” said Brian Calder, a fourth-generation resident and former president of the Point Roberts Chamber of Commerce. “And it just depends on how much more confrontation is stirred up by the U.S. government.”
Local Government’s Response
Point Roberts residents have urged Washington state officials to intervene and help mitigate the crisis. However, local government leaders admit there is little they can do to change the broader international trade policies that are harming the town’s economy.
“We understand that people want us to do more,” said Jed Holmes, a spokesman for Whatcom County. “But it’s really challenging to identify what meaningful things a county government can do to change this dynamic at the international level.”
Despite ongoing efforts, business owners like Hansen are left wondering how long they can keep their doors open. She employs 15 people but reported a 55% revenue decline in February compared to the previous year. On some days, her restaurant makes less than $100.
“There are businesses closing as we speak,” Hansen said. “It’s heartbreaking because we care about everyone in this town.”
With no resolution in sight, Point Roberts residents and business owners face a tough road ahead. The town’s survival depends on maintaining strong ties with its Canadian neighbors, but as trade disputes continue, the uncertainty threatens the very fabric of this close-knit community.
