By Canadian Press

Duty free stores look for financial support as cross-border traffic drops

Jun 3, 2025 | 6:34 AM

OTTAWA — An association representing duty free stores and a group of 15 border city mayors have written a letter to the federal government asking for financial support and clarity on export rules.

The Frontier Duty Free Association says its members have seen their revenue decline by 60 to 80 per cent as cross-border traffic slows due to the U.S. trade war.

The association is asking for “immediate” cash support for duty free stores, which they say are often key employers in small border communities.

The association also wants the federal government to align excise tax policies and export status with American duty free rules, something they say would make them more competitive with U.S. stores.

Association executive director Barbara Barrett says that duty free stores in small communities in Western and Eastern Canada are seeing the steepest loss in traffic.

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The association represents 32 duty free stores across the country.

This report by The Canadian Press was first published June 3, 2025.

David Baxter, The Canadian Press