B.C. duty-free store owner says trade war, travel boycott calls are hurting business

As the trade war intensifies, many Canadian leaders are urging people to avoid U.S. travel and products, but it's also hurting at least one business here.

A Surrey duty-free store owner says renewed trade tensions between Canada and the United States are once again taking a toll on his business, just as sales were beginning to recover.

“Until recently we had again back to two-hour lineups,” said Peter Raju, owner of Peace Arch Duty Free. “Our business has increased by about 30 per cent for the past four months.”

But Raju says the latest deterioration in Canada-U.S. relations, along with calls from political leaders to avoid travel south of the border, have once again slowed business.

On Aug. 25, Premier David Eby urged British Columbians to avoid non-essential travel to the United States.

“I’m asking British Columbians if you have a choice — please don’t travel to the United States,” Eby said, also calling for a boycott of the purchase of American products.

Raju, however, disagrees with that message.

“I don’t think the premier should be telling people what to do and what not to do. I think people are educated and sensible and they let them make their own decisions,” he said.

According to Raju, business dropped roughly 80 per cent during the previous round of trade tensions, forcing him to lay off dozens of employees. He believes the latest escalation is already having an impact.

“We have seen an immediate impact on our business,” he said.

The duty-free operator is also renewing calls for changes to provincial policies affecting duty-free liquor sales. Raju is urging the B.C. government to remove a 20 per cent liquor markup applied to duty-free stores, arguing it makes it more difficult for operators to compete with stores across the border.

He has also accused the province of failing to engage with the industry.

“His government is refusing to even answer any phone calls or give any attention to us,” Raju said.

While Raju is calling for more support for cross-border businesses, many of the people who spoke with CTV News said they’re choosing to stay closer to home amid ongoing trade tensions.

“One hundred per cent,” said Reid Mele of New Westminster when asked if he’s avoiding travel to the United States.

“It’s like the buy local, why not travel local too? It gives back to communities in Canada. Why would I go to the states and do that?”

Another B.C. resident, Jessica Smook, said politics are influencing her decision.

“As much as we would like to go back, we’re definitely not going back because it’s a little dicey, not so friendly politically.”

Another New Westminster resident, Laura McGee, echoed that sentiment.

“That’s not where I’m putting my money right now.”

A Canadian living in Seattle questioned the growing tensions between the two countries.

“Why would you have a dispute with your closest neighbour in one of the most secure borders in the world? I don’t know, it doesn’t seem to make a lot of sense,” said Rob Sorensen, a Seattle resident and duty-free shopper.

As businesses on both sides of the border navigate a trade war with no end in sight, Raju says the future of B.C.’s duty-free industry remains uncertain.