The recent imposition of new tariffs, first by the U.S. and then by Canada, is driving up expenses for residents around Passamaquoddy Bay -- particularly on Campobello Island, where residents are in a unique geographical situation that separates them from the rest of New Brunswick.
      The trade war began on February 1 when President Donald Trump announced a 25% tariff on Canadian goods, with the exception of energy resources at 10%; after a month long pause most of those tariffs went into effect March 4. The same day, Prime Minister Justin Trudeau announced retaliatory tariffs on American goods of 25%.
      "If the prime minister keeps the tariffs on in retaliation, it is going to cause hardship on the island," says Campobello Mayor Harvey Matthews. "There are people here that can't travel to St. Stephen to get the stuff they can't get here on the island. We depend on the states to fill our void."
      There are some purchases, such as gas, paint, car parts, tools and home-repair equipment, that can't be made on the island. The only pharmacy is open for four and a half days each week, meaning that after 4 p.m. and on weekends islanders who need over the counter medical products have to acquire them in Lubec or make the trip through Maine to St. Stephen.
      When Canadians do make a purchase in the U.S., they pay an exchange rate of approximately 145%, along with a 5.5% Maine state sales tax and a 15% New Brunswick harmonized sales tax. The 25% tariff is on top of that. "Some people just can't afford to pay 25% more," Matthews says.
      For Dwayne Richards of St. Stephen, the charges stacked up fast during a shopping trip across the bridge to Calais on March 4. His $25.87 worth of groceries in U.S. dollars amounted to a $53.02 charge in Canadian dollars on his debit card. "I would have expected approximately $38" on that purchase, Richards says, adding that he will be changing his shopping habits accordingly.
      Others are following suit. "I'm shopping in Canada much more now," says Laureen Newman of Campobello. "I'll probably renew my Costco membership, travel to Saint John and buy more so that I travel less for groceries." Even with that, the travel is excessive, with 200 kilometres, or 125 miles, between Campobello and Saint John. "We lose a whole day off just to go grocery shopping. It's so frustrating, and frankly I'm already tired of it."
      Traveling has its advantages, though, as islanders who buy in St. Stephen or Saint John and then bring their groceries or other goods back to the island by traveling through Maine can avoid the 25% tariff, as it only applies to goods imported into the U.S.
      Business owners in the U.S. are already noticing a difference. "It did have an immediate effect on our business," says Bob Craft, co-owner of Calais IGA, though he couldn't put a precise figure on it yet. He thinks his Canadian customers are staying away "because they are unsure what's going to happen when they go back across the border."
      For some Campobello residents, the tariffs aren't a big deal. "It hasn't changed anything," says Brendan Fitzgerald. "The only thing stopping people from shopping over there as much as they used to is our dollar is in the [toilet] and we can't afford the exchange rate."
      "I don't see a big difference. I don't shop a lot in the U.S.," concurs Dale Calder, retired customs officer with the Canada Border Services Agency on Campobello. What matters to him is making sure he's buying domestic products when he shops. "I'm very careful at the store. I check labels. I don't buy anything American. It's a sad reality. But I think that's the way it's going to be for the next four years." And some Canadian stores have been removing U.S. products from their shelves.
      Buying domestically may be a solution, but the situation is complicated. "I get why Canada is pushing 'buy local,' I really do, but what I want people to know is it's not the grocery store in Calais or Lubec or wherever in Maine or any of the stores that we consider locals' fault," says Matthews. "They don't want this any more than we do. I truly feel bad for all involved."
      The tariffs will have particular impacts on Canadian fishermen. Approximately 75% of New Brunswick's frozen lobster is sold to the U.S. While the tariffs on seafood were temporarily paused through early April, Matthews is concerned about when they will go into effect. "If [Trump] decides to keep them on, it would be devastating here. We depend on fishing. It would mean a lot out of fishermen's pockets, and with fuel bait and fishing supplies all being subject to more money in one way or the other because of tariffs, it will hurt tremendously."
Solutions considered
      Some possible solutions to alleviate the immediate problems of Campobello islanders have been proposed, including an exemption at the border for Campobello residents. Matthews reached out to New Brunswick Premier Susan Holt and has been working with the provincial government to raise the matter.
      The issue has been picked up by Canadian officials, including Southwest New Brunswick MP John Williamson, who responded through the Campobello Island Discussion Board on Facebook. "Campobello is the only community in Canada where residents must drive across an international bridge and travel through the U.S. to reach the rest of their own country. ... Families on the island must rely on cross border purchases in Maine for essential goods. Yet, under Ottawa's current tariff regime, even these necessary purchases are being subjected to surtaxes at the border."
      Williamson is urging the federal government to institute the exemption, noting, "This would provide immediate financial relief to island families that is consistent with federal policy. There is clear precedent for such an act, and similar exemptions have been granted in the past."
      Apart from a federal solution, Matthews, Williamson and Saint Croix MLA Kathy Bockus are working with the provincial government to request starting the ferry from Campobello to Deer Island months ahead of schedule, so islanders don't have to travel through the U.S. The ferry, which typically starts in late June, provides a way for islanders to travel by car to Deer Island and then to take a second ferry to the mainland.
      During the pandemic, the seasonal ferry was extended to year round service at a cost of approximately $60,000 a month, according to the New Brunswick Department of Transportation. Making the ferry year round, even if it weren't seven days a week, would alleviate some of the pressures on the island, according to those in favor of extending it again.
      While the ferry from Deer Island is free, however, the ferry from Campobello to Deer Island is $25 for a one way trip -- and it makes for a rush job, says Campobello resident Carolyn Savage. "You need to catch the Letete ferry by 5:30 to make the last Campobello ferry at 6:30."
      The effects of the tariffs go beyond higher prices, Savage says. "The worry is also our fishing industry, restaurants, tourism: the island's whole source of income."