US border businesses struggle due to Trump policies

What happened: Trump administration policies are impacting U.S. border businesses and cross-border trade, particularly with Canada. Western Union's earnings call revealed a decline in profits due to reduced border crossings. Canadian travel to the U.S. dropped by $3.3 billion in 2025, following Trump's return to office. Trump imposed a 50% tariff on various Canadian goods, further straining relations. A study found a 42% drop in Canadians visiting U.S. metro areas during Trump's second term.

Market impact: U.S. border businesses, particularly those reliant on cross-border traffic, are struggling. Remittance services like Western Union are seeing reduced profits. Canadian businesses exporting to the U.S. face higher costs due to tariffs, potentially impacting their competitiveness. U.S. packaging companies, for instance, may face higher input costs.

What to watch next: Western Union's next earnings call (Q2 2026, date TBD) for updates on remittance trends. The U.S.-Canada trade dispute's resolution, with key developments expected around upcoming NAFTA renegotiation talks. U.S. consumer spending data (June 2026, release date TBD) to gauge the impact of tariffs on U.S. consumers and businesses.