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WA border town strains without Canadian traffic, with layoffs, funding gaps

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Published  April 24, 2025 6:54pm PDT
Tariffs
FOX 13 Seattle

The Brief

    • Blaine faces economic challenges due to a 50% drop in Canadian cross-border traffic, impacting sales tax revenue crucial for funding essential services like the police department.
    • The downturn in Canadian consumer spending and freight traffic has led to layoffs and stalled commercial projects, highlighting Blaine's vulnerability due to its reliance on sales tax.
    • Regional leaders, including Surrey's Mayor Brenda Locke, emphasize the broader impact on border cities and the importance of maintaining cross-border flow for economic stability.

BLAINE, Wash. - Blaine is sounding the alarm over a sharp drop in Canadian cross-border traffic, a trend officials say is threatening the town’s economic lifeline.

During a roundtable event in Whatcom County with U.S. Senator Patty Murray, Blaine Mayor Mary Lou Steward said the number of Canadian travelers heading south has dropped by approximately 50%. She emphasized that the resulting dip in consumer spending is putting major strain on the city’s ability to fund essential services.

"We really, really depend upon Canadians coming to shop in Blaine," Steward said.

Big picture view:

For years, Canadians have routinely crossed the border to buy gas, dairy products, and pick up Amazon deliveries. Steward explained that these visits generate critical sales tax revenue, which the city uses to fund the police department.

"Everything hinges on this," Steward said. "People are being laid off."

Unlike many other cities, Blaine relies more heavily on sales tax than property taxes. That’s left the city especially vulnerable to changes in cross-border shopping habits. According to Steward, Canadian consumers already spend four times more in neighboring Bellingham than in Blaine, and the latest downturn is making matters worse.

Local perspective:

Steward also pointed to broader impacts, including a significant reduction in freight traffic. Sharing that 70% of Canadian carriers report southbound freight has decreased significantly.

According to Steward, the slowdown has already had tangible consequences. A Vancouver-based company paused a commercial development project in Blaine, which Steward described as a "much-needed" boost for the local economy.

Senator Murray heard from other border city leaders as well, including Mayor Brenda Locke of Surrey, British Columbia. Locke underscored the importance of the Peace Arch crossing, the largest in western Canada, and highlighted the broader regional impact.

"It’s not just about the Canadian imposition, it’s going to be Alaska imposition, the imposition here," Locke said. "Our residents are going to be desperately, desperately impacted."

The Source: Information in this story comes from original reporting by FOX 13 Seattle reporter Lauren Donovan.

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