Thursday, May 29, 2025
Saskatchewan has seen a significant decline in cross-border travel to the United States, with April 2025 reporting a 22 percent drop in border crossings compared to the previous year. This decline, which has put pressure on the travel retail sector, is largely attributed to escalating tensions between the US and Canada since the start of the year. The drop in cross-border traffic is particularly impacting duty-free stores, which are experiencing substantial sales losses. The reduced flow of travelers is compounded by new border policies and a less favorable travel climate, further straining local economies that rely heavily on cross-border tourism and retail.
Canada Saskatchewan Faces Sharp Drop in US Border Crossings Impacting Travel Retail Sector
Saskatchewan has experienced a significant decline in cross-border travel to the United States, adding pressure to the already struggling travel retail industry in the region. According to recent data from the US Customs and Border Protection (CBP), only 27,000 travellers entered the US through Saskatchewan’s 12 border ports of entry in April, representing a 22 percent decrease compared to the same month last year.
This sharp drop in crossings is widely viewed as a consequence of ongoing tensions between Canada and the US, which have escalated since early 2025. The deterioration in diplomatic and trade relations has created a challenging environment for businesses operating in border areas, especially duty-free retailers who rely heavily on cross-border shoppers.
Barbara Barrett, the Executive Director of the Frontier Duty Free Association, called the current situation a “full-blown crisis” for border duty-free shops. She highlighted the dramatic drop in sales, with certain stores at major crossings, such as North Portal–Portal in Saskatchewan, experiencing a 40 to 50 percent decline in business since the rise in tensions earlier this year.
The Frontier Duty Free Association has appealed to the Canadian federal government for immediate intervention. The association urges the authorities to provide targeted support to border retail businesses that have been hit hard by the reduction in cross-border traffic, warning that the livelihoods of many depend on the survival of this sector.
Despite the sobering CBP figures, Tourism Saskatchewan presents a slightly different perspective. Their data shows that US border crossings into Saskatchewan actually increased on a year-over-year basis during the first quarter of 2025, driven largely by recreational visitors attracted to the province’s popular hunting and fishing opportunities. However, this positive trend softened somewhat in April, aligning with the CBP’s report of a slight decline in crossings.
The mixed data underscores a complex picture: while tourism remains a key draw for American visitors, broader geopolitical and trade issues between the two countries continue to dampen the overall flow of travellers. The impact on border communities is substantial, affecting not only retail but also hospitality and local economies that depend on cross-border commerce.
Business owners in Saskatchewan’s border towns are feeling the strain. Many duty-free shops and retail outlets have reported sharp drops in revenue, forcing them to reconsider operations and staffing levels. The uncertainty surrounding border policies and the ongoing diplomatic rift has added to the difficulties in planning for the future.
Experts note that restoring confidence and easing tensions between Canada and the US would be crucial steps in reversing the downward trend in cross-border travel. Increased cooperation and clear communication on border management could help stimulate travel and revive the travel retail sector, which plays a vital role in the economy of border regions.
Meanwhile, travelers themselves are navigating a more complicated landscape. With stricter border checks, rising costs, and fluctuating regulations, the ease of crossing between the two countries has diminished compared to previous years. This shift discourages casual cross-border trips, which historically supported retail businesses and tourism in Saskatchewan.
The Saskatchewan government is closely monitoring the situation, working alongside federal authorities to find solutions that balance security concerns with economic vitality. There is an ongoing dialogue aimed at promoting tourism while ensuring that border security measures do not unnecessarily hinder legitimate travel.
In summary, Saskatchewan’s travel retail industry is confronting one of its toughest periods in recent memory. The marked decrease in cross-border crossings to the US in April, driven by diplomatic tensions and increased border restrictions, is placing considerable pressure on duty-free shops and local businesses. While tourism related to outdoor activities remains a positive factor, broader geopolitical issues must be addressed to restore healthy cross-border movement and support economic recovery in the region.
Saskatchewan has faced a 22 percent drop in US border crossings, largely due to escalating tensions between the US and Canada since early 2025. This decline is putting significant strain on the region’s travel retail industry.
As discussions continue at various levels of government, stakeholders remain hopeful that a path forward can be found to revive travel, reinvigorate commerce, and secure the future of Saskatchewan’s border communities.
