Trade tensions and increasingly expensive imported construction materials could drive some Point Roberts businesses out of B.C. market.
“I believe what we’ll do is we’ll change our buying, and we’ll just purchase out of the United States,” said Michelle Schwalback on the possibility of long-lasting levies on Canadian lumber.
The general manager of Nielson’s Building Center LLC, a hardware store in Point Roberts, says there’s been a big drop in demand for construction materials amid tariffs. However, she said this was mostly based on the price of the Canadian dollar.
“Of course, the tariffs have now made it more difficult and more challenging—more costly,” said Schwalback.
Although her hardware store sources most of its materials by land from the U.S., she said it does source lumber, gravel and soil from Canada.
On March 3, the U.S. Department of Commerce announced 20-per-cent preliminary anti-dumping duties on Canadian softwood lumber—duties that won’t become final until August. Canadian softwood lumber producers already pay duties of 14.4 per cent, on average.
Additional 25-per-cent tariffs on a broad range of Canadian imports will also apply to lumber.
Despite price increases, Schwalback said her hardware store pre-purchased a lot of lumber ahead of the tariffs taking effect, giving them the ability to hold their selling price throughout the upcoming busy summer months.
“Just because of the dollar, a lot of builders here were taking advantage of that and buying a lot of lumber out of Canada,” she said.
Declining B.C. visits hurt Point Roberts businesses
Building contractors and handymen could be particularly affected by higher material costs and lower demand, said Wayne Lyle, who added that a lack of B.C. visitors is hurting business overall in Point Roberts.
“The current political situation is darn right scary for our businesses there,” said Lyle, president of the Point Roberts Chamber of Commerce. “Ninety per cent of our business is Canadian.”
He says 1,100 people live at the pene-enclave full time, which is home to many dual-citizenship holders like him.
Around 70 per cent of the land and homes in Point Roberts are owned by people from British Columbia, said Lyle, who estimates that 90 per cent of the boats at the marina are also owned by Canadians.
“I doubt there’s another place, anywhere in America, that is more Canadian than Point Roberts,” he said. However, it seems that trade tensions have stopped British Columbians from crossing the border.
“Businesses are down at least 50 per cent over last February, March,” said Lyle. “The Pier Restaurant on Sunday brought in $50.”
Also on March 9, a Point Roberts souvenir shop known for its rubber duck museum made only $4 in gross sales.
“This is because people are not crossing the border,” he said. “We’ve only 1,100 residents, so it’s really important, especially for weekends, for Canadians coming down to spend a couple nights in their cottage to support those businesses.”
The close bond between Point Roberts and B.C. doesn’t end there, as all of Point Roberts’ water and electricity comes from Vancouver, says Lyle, adding that there is a fear that those costs could go up.
In retaliation to tariffs, Premier David Eby announced March 10 legislation plans that he says would allow the province to levy duties on U.S. trucks travelling through the province to Alaska.
Lyle said he’s hopeful this won’t apply to trucks bringing groceries and building materials to Point Roberts.
“We’re hopeful that people from B.C. will not just boycott anything American, and still support our tiny little town that’s so entwined with them,” he said. “Our little town needs Canada.
—With files from Nelson Bennett and the Canadian Press
