US-Canada Trade War Strains Cross-Border Towns

A renewed US-Canada trade war is straining the daily life and economy of two neighboring towns, Fort Frances, Ontario, and International Falls, Minnesota. Residents report a drop in cross-border shopping and rising anger over tariffs and political rhetoric, threatening a community that has relied on each other for over a century.

Canadian shoppers are increasingly choosing to "buy Canadian instead," according to a report by The Guardian. This shift, described as an unusual show of patriotism, is hurting American businesses in International Falls that depend on Canadian customers. Grant Hauschild, a Democratic Minnesota state senator, said he has heard from businesses that have lost up to 30% of their revenue from Canadians.

"You cannot imagine how angry that makes us," said Andrew Hallikas, the mayor of Fort Frances, regarding former US President Donald Trump's comments and trade policies. Hallikas was quoted directly stating, "We will never become the 51st state. We consider ourselves to probably be the best country in the world in which to live."

Economic Impact and Local Anger

American business owners are grappling with the uncertainty and costs of tariffs, with the tourist season winding down. Canada's retaliatory tariffs went into force recently, though local residents had not yet seen direct price changes. The economic strain is palpable. Heather Johnson, executive director of the Fort Frances chamber of commerce, described the push to buy Canadian as "pretty well elbows-up," noting she now drinks Canadian red wine instead of American options.

For two towns that function as one community, the tension simmers beneath the surface. During an interview with the mayor of International Falls, a Fort Frances resident interjected angrily, stating Canadians are "so pissed off" and that International Falls needed Canadians to survive. An American living in Canada told reporters he was now "scared to put that American flag on my shirt, what he's done."

A Century-Old Community Divided

The towns are connected by a toll bridge over the Rainy River, with a crossing fee of $10 for an average car. People cross frequently to shop, dine, bowl, and visit family. Despite the political climate, local leaders emphasize their deep personal ties. Mayor Hallikas called the towns "neighbors by geography, but we are friends by choice." Drake Dill, the mayor of International Falls, who lived in Canada for 11 years, said his friendships with Canadians involve "no politics" and no thought of trade wars.

Residents have long-established cross-border shopping habits. Common purchases made by Canadians in the US and Americans in Canada include:

Changing Habits and Lasting Fears

Tom Reid, who owns a duty-free shop in Fort Frances, said he no longer crosses the border for shows or groceries, a habit shared by his daughter. He noted that customers who once wore MAGA hats no longer do, and they often tell him they did not vote for Trump. When asked about missing American bourbon, Reid tells them, "Mr T took care of that."

Business owners report a decline in Canadian visitors. Leanne Guba, a Canadian who owns a craft store in International Falls, said she sees fewer Canadians due to rising costs, an unfavorable exchange rate, and politics. Local leaders fear the damage may become permanent. State Senator Hauschild worries that even if relations normalize, people and businesses may have "moved on" from the cross-border relationship. Mayor Dill expressed concern that a fundamental change would "hurt International Falls significantly." Johnson reflected on the shared identity, glad her kids grew up knowing "there really isn't a difference in people."