Tariffs and decreased border traffic a concern for duty-free stores

The ongoing trade war with the U.S. has caused a crisis for Canada’s duty-free shops. CTV’s Danton Unger reports.

The future of the Emerson Duty Free Shop is uncertain as a trade war mixed with decreased cross-border travel continues.

In a news release Tuesday, the Frontier Duty Free Association (FDFA) said shops sitting on the border are concerned about what the future holds.

“The uncertainty surrounding our future has deeply affected the store my family has operated for over 40 years—it no longer feels like a place of stability, but one of constant stress and crisis,” said Simon Resch, the owner and operator of the Emerson store, in a news release.

The FDFA said many businesses were still rebounding from the lack of travel during the pandemic, and now they are facing a new “crisis.”

In a national survey, the FDFA said a third of stores expect closures within months if the current economic turmoil continues.

The association is calling for support to help get stores through this time.

“We’re not asking for bailouts—we’re asking for fairness,” said Resch. “We’re federally regulated, we operate as export-only businesses, and we’re being crushed by policies and red tape that no longer make sense in this economic climate. If something doesn’t change soon, we won’t be here much longer.”

The FDFA represents Canada’s 32 land border duty-free shops.