How a US holiday hotspot could be crippled by Trump's Canada trade war

Yahoo

4 days ago

Overlooking picturesque Perkins Cove in Ogunquit, southern Maine, Barnacle Billy's has welcomed presidents, prime ministers and princes over the past six and a half decades.
George HW Bush used to ferry world leaders, including Bill Clinton and Mikhail Gorbachev, on his speedboat across the bay to the seafood restaurant from his summer residence at Walker's Point.
But now Tim Tower, the owner of the business, is more focused on a more prosaic clientele, Canadians.
Nearly 800,000 Canadians crossed the border last year, spending almost half a billion dollars in the US.
This year, Maine's businesses are bracing themselves for a 25 per cent drop, largely thanks to Donald Trump.
His repeated suggestions that Canada should become America's 51st state coupled with his tariff war, saw the number of tourists crossing over the Canadian border to holiday in the States drop by 157,000 in the first four months of the year.
Canadians also did not take kindly to Mr Trump berating Justin Trudeau, the former prime minister, belittling the country on Truth Social and antagonising Mark Carney, Mr Trudeau's replacement, throughout the general election earlier this year.
Sporadic reports of Canadians getting interrogated by Immigration and Customs Enforcement (ICE) agents, having their phones searched, and even being detained at the border has many Canadians under the impression that Trump's America is not putting out the welcome mat for its friendly northern neighbours.
One of the most popular spots for summering Canadians in the US is the northeastern state of Maine, home to a rugged, rocky coast, tranquil lakes and rolling, green mountains.
With traditional industries like paper manufacturing and textile mills having gone long ago, tourism is vital to the state's economy. It even has 'Vacationland' emblazoned on number plates.
It is Maine's business owners like Mr Tower who are at the sharp end of Mr Trump's falling out with Canada.
The son of the restaurant's founder, 'Barnacle Billy' Tower, trusts that generations of goodwill should shield the business from some of the fallout triggered by the US president's invective.
But the future is uncertain in the town and southern Maine as a whole with fears that the once steady stream of Canadian cars heading south is slowing down to a trickle.
Fewer Quebec and Nova Scotia number plates are being spotted on the roads down from Canada and far less French is being heard in restaurants and stores this spring, locals say.
Like many business owners, Mr Tower is somewhat apprehensive about what the summer holds.
'Revenue will be down. And hopefully there'll be something to counterbalance it if indeed the Canadians don't show up in the numbers we expect,' he told The Telegraph.
'But I'm worried about Canadians in general [not] coming because of a negative feeling they might have.'
Hoteliers have told him that Canadians who come to the seaside town of Ogunquit every year are giving Maine a miss this summer.
The fear is that some may never return.
'If you were going to choose any country to have a border with, of all the countries in the world, Canada would always be number one,' Mr Tower continued.
But he fears that the neighbourly goodwill has dissipated.
'I'm disappointed that one man or one administration could do something like that,' he added.
John Clancy, who owns the Perkins Cove Pottery Shop – which has been in business for 41 years, fears the predicted 25 per cent drop in tourists to Maine could be an underestimate.
'I had a conversation with a [Canadian] tour operator,' he told The Telegraph.
'This past season, they usually were scheduled like about 100 trips a season all over the US. And this year, they were down from 11 to five . And I think once they were at five, they just decided to cancel all trips for 2025.
'All this sort of ridiculous talk of Canada becoming another state, the rhetoric is just dismissive of our friends in Canada. So I could clearly see that Canadians were just not coming to visit.'
About 13 miles to the north, Ken Mason felt the cold blast of Canadian antipathy towards Mr Trump before the summer season even started.
Canadians account for around 40 per cent of springtime guests at the Seaside Inn on Kennebunk Beach, which has been in the same family since 1667.
'Traditionally, we have quite a few of the same Canadians come back each year; we have about an 82 per cent return rate,' he told The Telegraph.
'Each year in November, I send letters to returning guests offering them first refusal to come back the following season.'
'Starting about the end of January, beginning of February, I ended up having enough Canadians cancel that I had to refund just under $7,000.
'The only reason that any of them gave us was they just didn't like the rhetoric towards Canada and they didn't feel that they were welcome this year to come down to the States.
'They didn't like being called a little brother, they didn't like being called to the 51st state,' Mr Mason said.
He added: 'And these are people that have been coming for decades and I know them and I call them back and try to let them know that they're more than welcome in the area.
'They're more welcome anywhere in the States to come but they just said this year because they didn't feel like they were being welcome, they just went to pass and go someplace else.'
Old Orchard Beach, a seaside resort with an old-fashioned funfair, has been popular with Canadians for decades. It was singled out for a boycott by Mr Trudeau earlier this year.
In early March, as Mr Trump launched his trade war, the former prime minister pinpointed the Maine resort as a target for Canadian retaliation.
'This is a trade war,' Mr Trudeau said. 'Canadians are hurt. Canadians are angry. We're going to choose to not go on vacation in Florida or Old Orchard Beach or wherever.'
Canadians also boycotted other US products from Bourbon to wine as feelings ran high.
'We definitely did have a bunch of cancellations in January and February,' Sean Nickless, who runs the Crest Motel, told The Telegraph.
'Some Canadians are still coming. At the beginning, I was a little more pessimistic, but now I'm more hopeful.'
This is not the first time that Maine has fallen victim to Mr Trump's administration.
During his first term, his trade war with China saw Beijing slap a 40 per cent tariff on US lobsters, dealing a mortal blow to one of the state's other key industries.
Janet Mills, Maine's governor, who had a spectacular Oval Office row with Mr Trump over a transgender athlete, has tried to limit the damage to its tourist industry.
To make Canadians feel wanted in Maine, the state has put up signs in English and French welcoming them to the state.
She admits it is a small gesture.
'A sign can't stop harmful policies or rhetoric coming from Washington, but it can send a simple but powerful message — here in Maine, we value our neighbours, we will always treat them with respect, and we welcome them warmly to our state.'
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.