Canada's Duty-Free Shops are still trying to make up for lost ground during the COVID-19 pandemic, and the drop in cross-border traffic to the U.S. isn't helping.
The Frontier Duty-Free Association, which represents Duty-Free Shops across the country, said one in three are at risk of closing, spelling disaster for many small border communities where they are the biggest employer.
Officials from the association, along with 15 border city mayors, including Windsor Mayor Drew Dilkens, have penned an open letter to Prime Minister Mark Carney and National Revenue Minister Francois Phillippe Champagne demanding immediate action to save those small, often family-run businesses.
The association said some have witnessed an 80 per cent drop in business since U.S. President Donald Trump's 51st State remarks sparked anger across the country.
"This is not a fat cat industry," explained Sarnia Mayor Mike Bradley during a news conference Tuesday morning. "The people we have spoken to have these particular operations across this country are ordinary, working people who live in their community, employ people in their community, and give back to their community."
If Canada loses its Duty-Free industry, Bradley fears not only will 3,000 people lose their jobs, but governments will need to reinvent it in five to ten years.
Dilkens said Duty-Free Shops in Windsor are faring better than many but are still experiencing significant loss of business.
"If you look at sales in the Windsor region, they're down about 40 per cent. These are independently owned, small businesses that have just come back from COVID. We are trying to get our traffic back to pre-COVID levels, and now we've got another hit to these businesses," said Dilkens.
Unlike other border crossings that rely more on discretionary travel, Windsor's border hasn't seen the steep decline other border crossings have. Thousands of workers in Detroit continue to cross each day.
The association wants liquidity to keep Duty-Free Shops alive in the short term and regulatory changes that will help them compete.
Dilkens said it's not asking for much.
"We believe that those things can actually make a significant and impactful difference while we navigate these choppy waters," he said.