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Economy
Border crossing at Point Roberts, WA. Global News

This Washington State border town is caught in the US trade war with Canada — showing just how much international tensions can impact local economies and household finances

To reach Point Roberts, WA from the U.S., you must drive through Canada or travel by private boat or plane. The small town is located on the Tsawwassen Peninsula, separated from the continental U.S. by water.

Like so many northern border towns, Point Roberts is tied to Canada more than geographically. Many of its 1,000 residents are dual citizens of the U.S. and Canada.

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“Half of us here are dual citizens, including me,” Brian Calder, former president of the Point Roberts Chamber of Commerce, told Global News. “Canadian and American.”

As relations between the two countries cool, the town has been caught in the crosshairs of the trade war and tariffs. Residents are worried about what that might mean for their community and their access to essential services like water and energy.

Dependent on Canadian goods, energy and water

Point Roberts is economically vulnerable because it is geographically separate from the rest of the U.S. There’s no drug store, vet, dry cleaner, or car wash. Residents must cross into Vancouver for access to these services and many other products.

That same geography means townspeople can't ship in U.S. construction materials as easily, so they rely on Canadian building materials like roofing and concrete, exposing them to the 25% tariffs President Donald Trump announced on Canadian imports.

The town is also dependent on Canadian power and water — a concern if Canada were to turn off the taps.

“All of Point Roberts is served by BC Hydro for electricity and Metro Vancouver water,” Calder said. “If they cut that off, it’s done. It’s over.”

Dave Duncan, manager of the Point Roberts International Marketplace, said fewer Canadians are shopping at the store. Business has dropped in half from 500 customers daily to 250.

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Because perishables don’t last, he can’t keep his store stocked the way he could when there were more Canadian customers and product turnover was faster.

“The person coming in once (who) wants a gallon of milk and we don’t have a gallon of milk, or we don’t have the particular potato they’re looking for — it’s really difficult with the perishable items,” he told Global News.

Calder said things were already tough after the COVID lockdowns when half the businesses in Point Roberts closed. Now the businesses that remain are struggling to stay afloat.

“It’s absolutely devastating for Point Roberts businesses, those that are left,” Calder said, noting that Canadians have traditionally sustained 90% of the local economy.

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How to weather an economic storm

Point Roberts is a case study in how international trade wars can impact local American communities and livelihoods. Until tensions and tariffs are resolved, it's important to safeguard your own financial future.

Here are a few ways to protect yourself:

Stock up where you can

With the cost of goods rising due to tariffs, stocking up on essentials when they’re on sale can help you stretch your budget. If you’ve been planning to buy big-ticket items like a new phone, car, or home appliances, consider making those purchases sooner rather than later to avoid potential price hikes.

Look for ways to improve self-sufficiency

Becoming more self-sufficient, even in small ways, can reduce financial strain during times of economic instability. Depending on your situation, this might include growing your own vegetables or herbs, raising chickens for eggs, learning basic home repair skills or stockpiling non-perishables and essential supplies.

Get involved in your hyper-local community

A strong local network can be invaluable during tough economic times. Participate in community-based resource-sharing groups, like Buy Nothing and mutual aid groups. Creating or donating items to a local free pantry or Little Free Library can help you meet neighbors and share resources more easily.

Diversify investments

Economic uncertainty can lead to stock market fluctuations, so make sure your investment portfolio is diversified. While you shouldn’t pull out of the stock market completely, consider spreading your assets across high-yield savings accounts, certificates of deposit (CDs), government bonds, or real assets such as property or commodities that generally hold value over time.

While individuals may not be able to influence global trade policy, taking proactive steps can mitigate the impact of economic volatility. Planning ahead is key to weathering the storm.

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Danielle Antosz Contributor

Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.

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