Border mayors in Canada are pleading with the federal government to offer financial assistance to struggling independently owned duty free stores amidst ongoing political and economic trade war tension.
An open letter penned on behalf of the Frontier Duty Free Association (FDFA) has been signed by 15 mayors whose communities overlook the United States, and who have seen a steep decline in cross-border trips. On Tuesday, it was sent to Prime Minister Mark Carney and Finance Minister François-Philippe Champagne.
The association represents 32 stores across the country.
The letter outlines what’s referred to as a disproportionate impact the stores, and their work forces, are facing from tariffs and continued cross-border travel disruptions.
Duty free shops fear Trump’s trade war will force them out of business
Barbara Barrett, the executive director for FDFA, says “immediate action” is needed from Ottawa.
“When travel slows or stops, our stores — all independently owned, family run and often the main employer in their towns — are the first to feel it and often the hardest hit,” she told reporters during a Tuesday morning news conference on Parliament Hill.
“Our communities can’t afford to lose these businesses. That’s why today’s letter is so urgent and why we’re calling on the government to step in before the damage becomes permanent.”
Association president Tania Lee says some stores are seeing as much as 80 per cent in revenue losses. She says if that trend continues, one third of all duty free stores will close.
FDFA is looking for things such as liquidity support for its hardest hit stores, and clarity on export rules.
“Our ask is modest, but the need is urgent,” Lee said.
Sarnia Mayor Mike Bradley says duty free stores are struggling.
“This is not a fat cat industry,” he said.
“The people we’ve spoken to who have these particular operations across this country are ordinary working people who live in their community, employ people in their community and give back to their community.
Windsor Mayor Drew Dilkens also signed the letter to the federal government.
“We believe that those things can actually make a significant and impactful difference while we navigate these choppy waters together with their friends in the United States,” he said.
“While this matter [trade war] is being settled, let’s make sure that we keep people working.”
