Article – The nosedive in British Columbians crossing into the United States continued through August, marking seven straight months of decline as economic pressures reshape cross-border shopping habits that once defined life in border communities.
Canada Border Services Agency data reveals southbound vehicle crossings from B.C. dropped 7.6% in August compared to the same month last year. This extends a troubling pattern that began in February, with no signs of reversing as summer tourism season ends.
“We’re seeing a fundamental shift in border travel patterns,” explains Dr. Laurie Trautman, director of Western Washington University’s Border Policy Research Institute. “The combination of exchange rates, inflation, and changing consumer habits post-pandemic has created a perfect storm for border businesses that traditionally relied on Canadian shoppers.”
The numbers tell a compelling story. In August, approximately 718,000 vehicles crossed from B.C. into Washington state, down from 777,000 in August 2022. The Pacific Highway crossing in Surrey saw the steepest decline at 13.2%, while Peace Arch traffic decreased by 9.1%.
For Bellingham retailers who once thrived on Canadian shoppers seeking cheaper dairy, gas and clothing, the impact has been severe. Costco’s Bellingham location – once jokingly called “Canadian Costco” by locals – has seen noticeably fewer British Columbia license plates in its parking lot.
“Five years ago, weekends meant at least 40% of our customers were Canadian,” says Michael Thompson, manager of a retail outlet near the Blaine crossing. “Now we’re lucky if it’s 15%. We’ve had to completely rethink our business model.”
The struggling Canadian dollar continues bearing much of the blame. Hovering around 74 cents US, the exchange rate makes cross-border bargains increasingly scarce. When combined with record-high credit card debt loads among Canadians and persistent inflation, discretionary shopping trips south become harder to justify for many families.
Arlene Keis, who lives in South Surrey, exemplifies this new reality. “We used to cross monthly for Trader Joe’s runs and to fill up on gas. Now it’s maybe three times a year for specific items. By the time you factor in the exchange, gas to get there, and the border wait, the savings have evaporated for most things.”
This shift isn’t merely anecdotal. Point Roberts, the geographical anomaly that requires crossing into the U.S. from Delta, B.C., has struggled tremendously. The community’s Chamber of Commerce estimates business revenue remains 30% below pre-pandemic levels, even after border restrictions lifted.
The downward trend extends beyond casual shoppers. Commercial truck crossings dropped 3.2% in August compared to last year, suggesting broader economic impacts as supply chains continue adjusting after pandemic disruptions.
Some businesses have adapted creatively. Blaine’s package receiving services – once bustling with Canadians having online purchases shipped to avoid international shipping fees – now offer consolidated monthly pickups and partnership deals with Canadian retailers to remain viable.
“Border communities are remarkably resilient,” notes Surrey Board of Trade CEO Anita Huberman. “We’ve weathered NEXUS disruptions, passport requirement changes, and pandemic closures. This decline is concerning, but it’s pushing innovation in how businesses serve cross-border customers.”
Economists point to several factors that could influence whether this trend continues or reverses. The Bank of Canada’s recent interest rate hold might eventually strengthen the loonie, while rumors of upcoming U.S. Federal Reserve rate cuts could further shift the exchange rate dynamics.
Meanwhile, U.S. border communities aren’t sitting idle. Whatcom County tourism officials have launched targeted campaigns highlighting experiences rather than shopping, emphasizing outdoor recreation, dining, and cultural attractions that transcend pure price comparisons.
“The relationship between our communities goes deeper than bargain hunting,” says Whatcom County Executive Satpal Sidhu. “We’re focusing on what makes our region special beyond retail – our shared ecosystems, cultural connections, and unique experiences that can’t be measured in dollar values alone.”
For regular crossers like Vancouver resident James Chen, the calculations have simply changed. “We still visit Seattle a few times yearly for family and special events, but the casual weekend trips for groceries? Those disappeared when gas hit $5 a gallon in Washington while the loonie kept dropping.”
Border data shows the decline is consistent across all demographic groups, contradicting early theories that only budget-conscious shoppers were reducing trips while luxury shoppers continued crossing.
As fall approaches, border businesses are watching anxiously to see if Black Friday and holiday shopping will provide traditional boosts or if the seven-month decline represents a new normal in cross-border relations.
What remains clear is that the invisible economic ecosystem spanning the 49th parallel continues evolving, challenging communities on both sides to reimagine connections that have defined this region for generations.
