A National Post investigation published April 4 2026 highlights a sharp 28 % year-over-year decline in Canadian visits to the United States—22.9 million trips in 2025 versus 31.9 million in 2024—creating an existential crisis for Canada’s 31 land-border duty-free shops. Store owners report revenue drops of up to 75 % compared with pre-pandemic 2019 levels, forcing mass layoffs and one permanent closure in Woodstock, Ontario. Stakeholders blame a cocktail of factors: lingering pandemic travel hesitancy, the 2025 Canada–U.S. trade spat, and political calls to “buy Canadian” amid rising protectionism south of the border. Operators also point to Canada’s domestic excise tax—CAD 40 per cigarette carton—as a competitive handicap when U.S. stores across the bridge sell tobacco tax-free.
![Plunge in Canadian Trips to U.S. Threatens Viability of Land-Border Duty-Free Stores]()
If your organization still needs to send staff across the border, using a reliable documentation partner can streamline the process. VisaHQ’s Canada portal (https://www.visahq.com/canada/) offers up-to-date guidance on U.S. entry requirements, ESTA registration, passport renewals and other consular services, helping travelers avoid last-minute surprises while duty-free options remain uncertain.
The Frontier Duty Free Association is lobbying Ottawa for relief, requesting excise realignment and bridge-financing loans. Unlike during COVID-19, no targeted federal subsidies exist, leaving small border-community businesses exposed. Owners warn that without action duty-free retail could disappear entirely from the Canadian side, eroding tourism revenue and removing a key outbound-traveller service. For mobility managers, the downturn translates into fewer consumer amenities for employees driving to U.S. client sites. It may also foreshadow tighter cross-border sentiment that could manifest in future policy friction. Companies routing high volumes of travellers through land crossings should monitor wait-time data and prepare for potential retail-service gaps, particularly in remote locations where duty-free stores double as currency-exchange points. The story underscores how geopolitical narratives can swiftly alter travel patterns, reminding businesses to diversify supply chains for on-the-ground travel services.
If your organization still needs to send staff across the border, using a reliable documentation partner can streamline the process. VisaHQ’s Canada portal (https://www.visahq.com/canada/) offers up-to-date guidance on U.S. entry requirements, ESTA registration, passport renewals and other consular services, helping travelers avoid last-minute surprises while duty-free options remain uncertain.
The Frontier Duty Free Association is lobbying Ottawa for relief, requesting excise realignment and bridge-financing loans. Unlike during COVID-19, no targeted federal subsidies exist, leaving small border-community businesses exposed. Owners warn that without action duty-free retail could disappear entirely from the Canadian side, eroding tourism revenue and removing a key outbound-traveller service. For mobility managers, the downturn translates into fewer consumer amenities for employees driving to U.S. client sites. It may also foreshadow tighter cross-border sentiment that could manifest in future policy friction. Companies routing high volumes of travellers through land crossings should monitor wait-time data and prepare for potential retail-service gaps, particularly in remote locations where duty-free stores double as currency-exchange points. The story underscores how geopolitical narratives can swiftly alter travel patterns, reminding businesses to diversify supply chains for on-the-ground travel services.
