Strained US-Canada Relations Lead to Decline in Canadian Tourism to Whatcom County, Bellingham, and Birch Bay, Threatening Local Economy – Here’s What You Need to Know

Published on November 21, 2025

Whatcom County in Washington state, a key destination for Canadian shoppers and tourists, is grappling with a noticeable decline in cross-border traffic, especially from Canada. A drop in Canadian visits has left local businesses vulnerable, with many owners warning they may not survive unless there is a swift recovery. The sharp decline in visitors is a result of recent tensions between the U.S. and Canada, including trade tariffs and political remarks that have soured relations. This situation is particularly affecting businesses reliant on Canadian spending, which accounts for a significant portion of sales in the region. With the recent Bellingham Regional Chamber of Commerce survey showing that many businesses are struggling, the economic outlook for Whatcom County looks uncertain without a reversal in cross-border travel patterns.

What’s Behind the Decline in Canadian Tourism?

The steady decrease in Canadian visitors to Whatcom County is a significant concern for local businesses that have long relied on cross-border traffic. Between June and August 2024, over 5.3 million individuals crossed the border from Washington into Canada, but in the same months of 2025, that number dropped by 25%. A crucial reason for this decline can be traced to recent political tensions, including the imposition of tariffs on Canadian goods by the U.S. and controversial statements about Canada’s status. Such actions have led many Canadians to rethink their travel plans, opting to avoid U.S. destinations altogether. This shift is hitting hard in regions like Whatcom County, where Canadian tourists contribute heavily to the local economy.

The Financial Impact on Whatcom County Businesses

In addition to a drop in border crossings, local businesses in Whatcom County are reporting noticeable impacts on their bottom line. Retailers, restaurants, and small businesses that traditionally thrive during peak tourist seasons now face declining sales as their Canadian clientele diminishes. The Bellingham Regional Chamber of Commerce surveyed businesses in the area, and more than half revealed they had been directly impacted by the drop in Canadian visitors. Many business owners are now concerned about their survival in the absence of a rebound in tourism, with some saying they are at a breaking point.

Retailers Suffer as Canadian Shoppers Stay Away

Whatcom County’s retail sector has been particularly hit hard. Canadian shoppers typically make up a significant portion of the region’s retail purchases, particularly in areas such as Bellingham, where 12% of taxable retail sales come from visitors across the border. Businesses like Cardhaven Games and Betty Be Good Boutique have seen drastic reductions in Canadian traffic. With fewer Canadian tourists entering the U.S., the economic ripple effect is felt throughout the county, leading to layoffs, reduced hours, and businesses questioning their ability to stay afloat.

The Shift in Tourist Demographics: Californians Fill the Gap, But Is It Enough?

Despite the downturn in Canadian visitors, some businesses are seeing a modest rebound in their visitor numbers, primarily from tourists in the U.S. states of California and Oregon. Although this influx has helped fill some gaps, it is not enough to offset the revenue loss from Canadian tourists. In particular, businesses located in Birch Bay, which rely heavily on Canadian customers, have reported a significant drop in sales. While there was a slight uptick in visitors over the summer months, it was not enough to guarantee long-term financial stability.

What Can Be Done to Boost Canadian Tourism?

To reverse the downturn in Canadian tourism, local government officials and business owners are advocating for closer ties between Washington and Canada. One of the most crucial steps in restoring these relationships is to de-escalate the trade conflict and work on policies that encourage Canadian travelers to return. Offering discounts and special promotions for Canadians could also help entice them to visit again. Additionally, efforts to enhance cross-border cooperation, such as quicker and more convenient border crossing processes, may help increase the flow of visitors.

Travel Tips for Canadian Visitors

If you’re a Canadian traveler considering a trip to Whatcom County, here are some helpful tips:

1. Check for Travel Restrictions: Ensure there are no new travel advisories or border delays before planning your trip.
2. Look for Promotions: Many businesses in Whatcom County are offering special deals for cross-border tourists to entice more visitors from Canada.
3. Support Local Businesses: By shopping and dining in local stores and restaurants, you can help revive the local economy during challenging times.
4. Consider Alternative Routes: Traffic at major border crossings like Blaine and Sumas can be heavy. Consider taking less crowded routes for a smoother experience.
5. Book Early: With fewer Canadian visitors, accommodations may be more available than in previous years, but it’s still a good idea to book early.

The Road Ahead: Can Whatcom County Recover?

While it is clear that Whatcom County is currently facing an uphill battle in terms of tourism, there is hope that with the right policies and strategic efforts, the region can recover. Cross-border tourism has always been a pillar of the local economy, and many business owners remain optimistic that a change in political rhetoric or a reversal of tariff policies could lead to the return of Canadian shoppers. Until then, Whatcom County will have to navigate through uncertain waters as it works to rebuild its relationship with its northern neighbour.