Washington towns are losing money as Canadians snub U.S. border for 13 straight months

Border crossings hit a 13-month losing streak

Vehicle crossings from British Columbia into Washington state have now fallen for 13 months in a row, from February 2025 through February 2026.

Data from the Cascade Gateway Border Data Warehouse and Whatcom Council of Governments tracks four crossing points: Peace Arch, Pacific Highway, Lynden, and Sumas.

In February 2026, about 100,700 B.C. vehicles entered Washington, down roughly 17% from the same month a year earlier. That drop is actually the smallest since the streak started, which could hint at a slight easing.

Crossings went from growing to collapsing fast

The shift happened quickly. In January 2025, B.C. crossings were actually up 10% year over year, continuing a post-COVID recovery. Then February hit, and crossings dropped 29%.

March saw a 43% decline. April brought the steepest fall of the year at 51%.

For all of 2025, southbound B.C. vehicle crossings fell about 35% compared to 2024, with close to 1 million fewer travelers making the trip south.

Political tensions kicked off the drop

The downturn started after President Trump threatened tariffs on Canadian goods and made repeated comments about Canada becoming the 51st state.

Former Prime Minister Justin Trudeau urged Canadians to “choose Canada” and spend their money at home.

B.C. Premier David Eby said in early March 2025 that British Columbians should avoid traveling to the U.S. if they had a choice.

A broader “Buy Canadian” movement gained steam, with Canadians pulling back from U.S. goods and travel.

More than politics keeps Canadians home

Political anger drove the initial drop, but other forces piled on. The weak Canadian dollar made cross-border shopping less of a deal.

Canadians also grew nervous about the border crossing itself, with reports of detentions and more device searches making the rounds.

Laurie Trautman, director of the Border Policy Research Institute at Western Washington University, said Canadians of color, including Asian, South Asian, and Indigenous people, feel especially cautious about crossing.

New photo rules add to border concerns

On Dec. 26, 2025, a new Department of Homeland Security rule took effect requiring all non-U.S. citizens to be photographed at land borders, airports, and seaports when entering and leaving the country.

The rule removed previous exemptions for children under 14 and adults over 79. Photos go into a DHS database and stay there for up to 75 years.

Full rollout at land borders is expected sometime in 2026, with airports and seaports following over three to five years.

Seattle took the biggest international tourism hit

In 2024, about 1.7 million Canadians visited Seattle and King County, making up 73% of all international tourists there. Those visitors spent about $586 million in the local economy.

A Tourism Economics forecast projected a roughly 27% decline in Seattle’s international overnight visitors in 2025, with 99% of that loss tied to fewer Canadians coming.

That projected decline ranked as the steepest among major U.S. cities.

Border towns feel the pain most

In Bellingham, a joint survey by the Chamber of Commerce and Western Washington University found more than half of 60 businesses reported losses from the decline.

Whatcom County sales tax collections fell about 2% through the third quarter of 2025. Hotel occupancy dropped 3%, general merchandise sales fell 7%, and gas station convenience store sales plunged 20%.

Some businesses in Blaine and Point Roberts have already closed, according to the Border Policy Research Institute.

Clipper ferry slashes summer service in half

The Clipper ferry between Seattle and Victoria, running since 1986, cut its summer sailings by 50%. Canadian travel on the ferry fell 35%, while U.S. travel dropped 7% to 10%.

The company laid off 20 staff at its Seattle office and cut shifts for workers in Victoria. The CEO said uncertainty about border experiences was putting travelers off.

A ferry line that once thrived on cross-border traffic now runs at a fraction of its usual schedule.

The problem reaches far beyond Washington

A December 2025 report from the congressional Joint Economic Committee found U.S.-Canada passenger vehicle crossings fell nearly 20% from January to October 2025. Some border states saw declines as large as 27%.

Canadian tourism contributed about $20.5 billion to the U.S. economy in 2024 and supported roughly 140,000 American jobs. The report documented impacts in every state along the border, from Washington to Maine.

Local leaders fear lasting damage

Blaine Mayor Mary Lou Steward said she fears Canadians’ trust in Americans “may be broken for generations.” Trautman of the Border Policy Research Institute said the decline is starting to feel like a new normal.

The Bellingham Chamber of Commerce warned that smaller border businesses will have a much harder time adjusting.

An immigration lawyer in Blaine said that despite few actual problems at local crossings, attitudes toward cross-border travel have hardened.

Communities try to bring Canadians back

Some U.S. businesses have rolled out Canadian-exclusive deals and promotions.

Seattle businesses launched an “Open Arms Canada” campaign ahead of a Mariners-Blue Jays series, though attendance still came in below normal.

State and local tourism groups are shifting their marketing toward U.S. travelers to make up for losses.

Seattle officials point to the 2026 FIFA World Cup, which will bring matches to the city, as a chance to bounce back.

American workers carry the cost

The decline hits American workers and small business owners in border communities who depend on Canadian spending. When asked about the tourism losses, the White House did not address tourism or Canada directly.

A spokesperson said the president’s top priority is the safety and security of American citizens and that he is delivering on his promise to carry out the largest mass deportation operation in history.

Whether February’s smaller decline signals a turning point or just a slower rate of loss remains unclear.

This article was created with AI assistance and human editing.

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