BEYOND LOCAL: ‘We do miss our friends’: How Trump’s trade war impacts border town

SAULT STE. MARIE, Mich. — There’s a small Mexican saloon on the northern edge of the United States, and it relies on Canadians to cross the border.

The Palace Mexican Restaurant and Saloon has long been a popular spot for Canadians used to making the easy trip across the border to Sault, Mich. for a meal and a night out. But in recent months, the downtown restaurant has noticed a sharp decline in out-of-country diners.

“We have a lot of customers that are very proud of the fact they’ve been coming in for over 40 years, and there has been a significant decrease in Canadian customers,” said Elyse Perrault, front-of-house manager at The Palace.

As tensions flared between the U.S. and Canada in recent months, fewer and fewer Canadians from Sault, Ont. have headed stateside. Perrault said she gets why it’s happening, but hopes it doesn’t last.

“We do miss our friends over on the other side (of the St. Marys River), and we would like for them to come back, (but) we understand that everybody has their own feelings on crossing the border,” she said.

“We understand why people have chosen not to cross the border. We just look forward to things being smoothed over, and hopefully everybody will make their way back soon.”

Recent bridge crossing data shows no signs of a border traffic rebound.

In each month since U.S. President Donald Trump began his second term in January, Canadians have opted less and less to venture south as the president has rolled out and withdrawn a series of on-again, off-again tariffs for a multitude of Canadian goods — all the while musing about how Canada should become America’s 51st state.

Most recently, Trump jacked tariffs on Canadian steel and aluminum to an eye-watering rate of 50 per cent — an existential threat to the local steel industry in Sault, Ont.

Whether directly related to the president’s actions or not, International Bridge traffic is down 22.1 per cent so far this year compared to last — with a 13.5-per-cent drop year-over-year in February, a 29.9-per-cent drop in March, a 35.5-per-cent drop in April, and a 29.8-per-cent drop this May.

“When you’re not having a population of 80,000 in our sister city in Ontario crossing the bridge, it’s a concerning trend,” said Tony Haller, executive director of the Sault Area Chamber of Commerce.

While he has heard concerns from the chamber’s member businesses, Haller said he remains cautiously optimistic “we’re gonna have a good summer.”

“I’m hoping that trend will turn around here, so when we get the crossing totals in June we’ll see an uptick of some sort,” he said.

Some Michigan Sault businesses say they have taken a hit. But they also note that the exchange rate is far from favourable for those shopping with Loonies in the U.S.

Two gift shops told SooToday they are seeing fewer Canadian customers than usual.

“It’s a portion of our business for sure, but we notice that a lot of times, depending on the exchange rate. That makes a big difference,” said The Mole Hole’s Jen Reattoir. “But it does seem like fewer even coming in.”

Another gift shop employee wondered whether the exchange rate might be the key culprit in decreased traffic.

“They’re already paying 40 extra cents on their dollar . . . and then you have all the animosity between the two with the tariffs added,” said a Great Lakes Gifts employee named Tara.

As the situation has unfolded, she said she noticed that some Sault, Ont. shops have begun identifying which products are Canadian, as more and more shoppers look to buy products made north of the 49th parallel – or at least not immediately south of it.

“I do commend Canadians for shopping Canadian,” she said.

Regardless of why traffic is down, some businesses are offering incentives for Canadians who come across.

At Tanglewood Marsh Golf Course, Canadian golfers can hit the links at par with the Canadian dollar from Monday to Friday, meaning the Loonie is taken as the equivalent of the much stronger U.S. dollar.

“We try to be neighbour friendly,” said manager Jen Metro. “We know how hard it is with the tariffs and all, and we really want to extend our condolences that that’s happening.”

“Other businesses, as well – we talk amongst each other and we feel bad that it’s happening.”

Although traffic is down at the border, Metro said 24 of the club’s 300 members are Canadian – a number similar to previous years.

Some industries don’t appear to have been impacted. Ojibway Hotel only receives “a handful of people here and there” from across the river, according to hotel supervisor, Fallon O’Brien.

The story is the same at the Long Ships Motel, which primarily draws repeat American customers interested in the Soo Locks – but that doesn’t mean Canadians aren’t missed in Sault, Michigan.

“I haven’t seen as many Canadian license plates in the area, by any means,” said Holly Sparks, an employee at the motel.

“I would be considered First Nation, so it bothers me that those are my relations over there, and they’re not coming.”