In 2013, Mike Hallatt was banned from every Trader Joe’s in the United States for stocking his car with their goods and reselling them in his Vancouver spinoff store, Pirate Joe’s. Trader Joe’s does not have any stores in Canada, yet their goods are a familiar staple for Canadians. For decades, the United States has functioned as an informal grocery aisle for Canada, supplying everything from cheaper milk to Trader Joe’s Takis. When cross-border shopping first declined in 2015, shoppers cited the high exchange rate as the cause. The same trend has reappeared a decade later, but this time, the Canadian dollar remains resilient against the US dollar. While the United States and Canada have historically shared a strong trade relationship, tariffs imposed by the Oval Office have strained this relationship. The sudden decline in cross-border shopping indicates a shift in consumer behavior and represents a stark change in consumer preferences that is driven by politics rather than economics.
Cross-border shopping had become an almost ritualistic practice for the 90 percent of Canadians living within 100 miles of the United States — Canada border. The desire for lower prices and greater geographical convenience made this practice especially prominent in towns just south of the border. At a Trader Joe’s in northern Washington, for example, over 40 percent of its credit card transactions are initiated by non-US citizens. Despite its economic significance, this cross-border shopping relationship has historically attracted little national attention, largely because it has existed within the context of a long-standing US — Canada relationship. Agreements such as the United States — Mexico — Canada Agreement allowed specific goods to travel tariff and duty-free, and over $3.6 billion in goods and services were exchanged between the neighboring states daily as recently as January, 2025.
Although the closure of Pirate Joe’s is attributed to mounting legal costs associated with selling Trader Joe’s products across the border, the broader decline in cross-border shopping reflects a different phenomenon: These once-routine cross-border exchanges have largely disappeared, and land travel from Canada has dropped by over 30 percent since President Donald Trump took office for his second term.
Trump’s anti-Canadian rhetoric (including comments that he would like to see Canada become the 51st state) may sound like just another frivolous provocation against a fellow world leader. However, Trump’s plan to use “economic force” to push Canada into American statehood has been operationalized. In early 2025, Trump signed an executive order placing a 25 percent tariff on imports from Canada, which he later raised to 35 percent. More recently, he kicked off 2026 by threatening a 100 percent tariff on Canadian goods. In response, Canadians appear to be opposing Trump’s hostility with an economic force of their own. Canadians hold substantial purchasing power that can serve as a proxy for their dissent.
As a result, Canadians have left their passports at home and turned to domestic stores, scrounging the shelves for “Made in Canada” labels. This is part of a larger “Buy Canadian” movement that erupted in response to Trump’s abrasive rhetoric and trade policies towards Canada. This drive to shop patriotically is reflected by the 81 percent of Canadians who said they were motivated to “Buy Canadian.” As a result, Canadian firms are reorienting from international supply chains and even hiring marketing interns to help with “maple-washing.”
“Buy Canadian” is not just a grassroots movement or a social media trend; it has also been reinforced on the institutional level. Provincial Liquor Control Boards, such as those in Ontario and British Columbia, intend to stop stocking American liquor in their stores. Meanwhile, the Government of Canada announced the Buy Canadian Policy in December, which gives Canadian businesses priority in major federal contracts. Framed as a geopolitical battle against Trump’s tariffs, the movement’s impacts extend beyond intended targets, producing significant economic harm to the pockets of northern border towns across the United States.
The decline in Canadian travel alone resulted in a $5.7 billion dollar loss for the United States tourism sector in 2025. In border towns, tense geopolitics can manifest in the form of empty parking lots. Kyle Daley, a supermarket owner in West Stewartstown, New Hampshire, stated, “When our neighbours stay away, our margins disappear, and those margins are vanishingly small to begin with.”
The damage does not end at the checkout counter. State governments rely heavily on sales tax, which funds a wide range of public services. Across states, the sharp reduction in sales tax revenue will exacerbate budget constraints on K-12 schools. On average, 45 percent of school funding comes from state revenue, and schools are already contending with a disruption of over $12 billion in federal funding since Trump took office. The $4.9 million initial decline in sales tax revenue in Erie County, New York has also been felt significantly by Erie’s Highway Department, which relies on the sales tax for 75 percent of its funding.
The shift in Canadian consumerism could be lasting even if US — Canada tariffs were to return to a pre-Liberation Day normal. Just as cross-border shopping was once routine, Canadian shoppers are now building new habits that explicitly exclude the United States. What began solely as a political statement against American protectionism could mean a more serious economic realignment and a new normal for the two countries’ trade relations. This realignment will indisputably impact international business deals, and its ripples will be felt in the everyday livelihoods of small northern border towns.