Northwestern Ontario businesses brace for tariff impact
Tourism businesses say tariffs could dissuade American visitors
As the United States and Canada descend into a trade war, some northwestern Ontario businesses near the border say they're worried they'll be caught in the crossfire.
"Northwestern Ontario is highly dependent on U.S. travellers," said Gerry Cariou, executive director of the Sunset Country Travel Association.
One of the biggest local economic drivers is fishing, hunting and other outdoor-related tourism, he said. Roughly nine out of 10 guests who travel to the Kenora area to stay at lodges are from the United States, said Cariou.
"The marketing activity of a typical fishing or hunting lodge in this area of Ontario is exclusively directed at Americans."
Americans have traditionally been the primary market for fishing lodges because of their proximity to the border, which makes it closer for many Americans to get to Kenora than it would be for the majority of people living in large Canadian cities. Canadians living within a day's drive of Kenora usually have their own camps, and aren't as incentivized to stay at a fishing lodge with a guide, said Cariou.
Cariou said he's concerned the tariffs on bringing items like groceries or fuel over the border to Canada may dissuade Americans who might otherwise be interested in visiting.
"It's going to potentially lead to cancellations by people who react negatively to it, so I could see this having a negative impact on tourism in 2025 season in Ontario."
Cariou said it's sad that relations between the two countries have degraded to the point it could impact people and businesses.
"Tariff wars are not the answer to solving trade issues, in my opinion."
Impact felt by local businesses
Business owners could also feel the tariffs hit their own wallets directly, said Ted Putnam, owner of Hawk Lake Lodge in northwestern Ontario.
Putnam, who is American, said he usually brings $20,000 to $40,000 of supplies for the summer over the border with him at the start of each season. Often this includes products that are hard to procure in Canada, he said.
"There are a lot of things as business owners in northwestern Ontario that we don't really have a choice — we have to buy them. So a lot of products are coming from the states, whether they're specialized products for boats, engines, electronics, kitchen appliances, whatever."
Putnam said he's had to reduce what he's bringing this year because of the tariff costs.
While he doesn't expect the tariffs to cause guests to cancel, he said other factors related to the trade war could make Canada less appealing to visit.
"It's not even the money, but also the potential increase in times to cross the border and wait times. These small border crossings, whether it's Baudette or International Falls, they're not really ready to handle looking at every car coming in and having them come into the border crossing station and take care of a tariff on $200 worth of potatoes and oranges and eggs," said Putnam.
He said he's not worried about tensions between the two countries impacting guests hoping to stay at his lodge.
"This isn't between Americans and Canadians. It's really between sort of the two governments that are having this issue. Because Americans are definitely welcome up in Canada."