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Politics

A tiny Washington town only accessible through Canada has been so hurt by trade war even sales at its liquor store are off 40%

By
Sally Ho
Sally Ho
and
The Associated Press
The Associated Press
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By
Sally Ho
Sally Ho
and
The Associated Press
The Associated Press
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March 24, 2025, 8:27 AM ET
Tamra Hansen, a dual citizen of Canada and the United States, poses for a portrait at her restaurant, The Pier, which is down over fifty percent in sales compared to last year, on March 17, 2025, in Point Roberts, Wash.
Tamra Hansen, a dual citizen of Canada and the United States, poses for a portrait at her restaurant, The Pier, which is down over fifty percent in sales compared to last year, on March 17, 2025, in Point Roberts, Wash. Lindsey Wasson—AP
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In the northwest corner of Washington state lies a quirky U.S. exclave so dependent on Canada’s goodwill that the strain of President Donald Trump’s tariff war is inescapable — in the sole grocery store, at any of the three eateries, and for the many residents who never voted for him.

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Locals and visitors alike in Point Roberts, Washington, are increasingly worried about how this unusual waterfront border town that has embodied the two countries’ interdependency can survive the hostility brewing on both sides.

“This was really devastating,” said Tamra Hansen, a longtime Point Roberts resident and business owner whose eyes welled with tears as she described her two restaurants on the brink. “If we don’t get the support from the Canadians, this town will die.”

Known as a geographic oddity since the boundary with Canada was drawn in 1846, this detached 5-square-mile community — called an exclave because it’s completely separated from mainland America — is surrounded by water on three sides. Its only land connection is to Canada and it takes one border crossing and about 25 miles north by car to get to downtown Vancouver, B.C.; or two border crossings and about 25 miles through Canada to re-enter the United States along Boundary Bay.

The beaches, marina, golf course and hiking trails have long made Point Roberts a cherished getaway destination, but today locals say business has never been worse. Canadian visitors are staying away and some American residents say they’ve even been harassed over their nationality.

Point Roberts Fire Chief Christopher Carleton said Point Roberts is one the last remaining untouched natural gems of the United States, but the tight-knit community with no stop lights is now under threat by politicians who know nothing about their way of life.

“We need to take care of one another and have grace for one another and not allow people who don’t even know we exist to disrupt the relationships we currently have,” said Carleton, whose firefighters mostly live across the border.

Tensions between the U.S. and Canada have spiked to a level not seen before in modern times thanks to Trump’s on-again, off-again threat over the past two months to place taxes on a long list of goods going across the border. In response, Canada has promised retaliatory tariffs.

For a country that has famously prided itself on being nice, polite and loyal allies, Canadians aren’t hiding their disgust for Trump’s polarizing rhetoric, especially taking offense with the U.S. president’s claim that Canada could be the “ 51st state.”

Mark Nykolaichuk said he refuses to go to the mainland U.S. but describes Point Roberts as a unique exception because the border here has never felt like an actual divide for Canadians like him who grew up visiting.

Most of the property owners here are from Canada, and many of the 1,000 year-round residents have dual citizenship. Once a booming fishing town, the leading industry now, according to U.S. Census data, is retail — primarily driven from tourism because of the number of vacation properties. The unincorporated Whatcom County community is now mostly home to retirees, though this year there are seven students — nicknamed “The Borderites” — at the lone public school.

Nykolaichuk, who lives in the Vancouver, B.C. area, said he hopes he can help keep the Point Roberts International Marketplace open by shopping there, given that management reports business is down 20% to 30%. He depends on Point Roberts’ only grocery store to be able to cook at his vacation home because U.S. customs doesn’t permit raw meat to enter its borders, for example, so he must buy it in town.

“Nobody wants to see this place shut down,” Nykolaichuk said. “If this place goes, where are the U.S. citizens going to eat? Where are they going to get their food from?”

Many in Point Roberts don’t blame the Canadians for their disdain over Trump’s perceived sovereignty threat. Instead, there’s a deep sadness for both sides.

“We’ve always gotten along and it’s just nonsensical because now the U.S. is going to suffer too,” said Hansen, who is a dual citizen. “I definitely feel for the Canadian people at this time because they’ve got their backs against the wall, really, and they have to retaliate.”

Like many locals, Larry Musselwhite, owner of Larry’s Liquor Locker, is angry at Trump and blames the president for Point Roberts’ economic problems. The 75-year-old said he can’t even think about retiring right now because of the economy. His liquor store was down 40% in sales last month.

“This is because of our elected president, who really doesn’t care about the common man and the struggles that we have to go through,” Musselwhite said. “It greatly affects how I live my life.”

About 75% of the Point Roberts precinct voted for a presidential candidate other than Trump, which is a higher percentage than across Whatcom County as well as the statewide turnout, according to the 2024 election results.

Locals say one of the most frustrating things about the tit-for-tat is the way that the tariffs have abruptly started and stopped, creating an unsteady flow of changes to customs. The whiplash for residents who often cross the border multiple times a day leaves them unsure whether or when they’ll be surprised with a new penalty.

This fear over unexpected tariff fees has made people cautious about buying things in Point Roberts — if they’re coming into town at all.

Hugh Wilson, a real estate agent who also manages several local Airbnb listings, said properties have seen more cancellations than bookings lately.

“Nobody is sure of the rules at any one day here,” Wilson said. “The border agents do the best they can to stay up to date and they relay that to us as normal people crossing the border.”

With no end in sight, there’s also a high-stakes fear that the dispute could escalate with Canada possibly imposing tariffs on the water and electricity that it supplies to Point Roberts, or even turning off the utilities altogether.

“If it gets more brutal, they can cut off the water just like that, or the power,” said Brian Calder, a fourth-generation resident who was previously the president of the Point Roberts Chamber of Commerce. “And it just depends how much more confrontation is fomented by Trump’s office.”

Calder said he and other town leaders are trying to plead for help with the British Columbia premier and the governor of Washington state. He said the local Whatcom County leadership has all but abandoned this far-away community in a time of crisis.

Jed Holmes, a spokesman for the county, said they are communicating with Washington state’s congressional delegation in D.C. to address the rapid deterioration in U.S.-Canada relations that has especially affected Point Roberts.

“I understand that folks want us to do more, but it’s really challenging to identify what meaningful things a county government can do to change this dynamic at the international level,” Holmes said in an email.

For Hansen, she’s asking herself how much more can she afford to lose personally while running the Saltwater Cafe breakfast spot and a restaurant called The Pier. She has 15 employees to pay but business was down 55% in February compared with last year. There have been times when her pub doesn’t even net $100 a day.

“There are some businesses that are going out of business right now as we speak,” Hansen said. “It’s very emotional for me because I care about everybody that lives here.”

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
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