Niagara businesses brace for slower summer amid U.S.-Canada trade war

The summer season is usually the best time of year for local tourist-driven businesses but there’s a dark cloud looming amid the U.S.-Canada trade dispute.

A new study says most small business owners in the area are concerned it will affect spending.

Andrew Vergalito is the owner of Italian Ice Cream on Victoria Street near Highway 420 in Niagara Falls. He says the summer is when he makes his bread and butter.

“It makes or breaks our year. If we don’t have a successful summer season, then winter can be long and hard,” says Vergalito.

And it’s not the only business depending on summer sales. Paula Tabar is the owner of New York News Convenience Store in Niagara Falls and she says a successful summer season is crucial.

“It’s very important because we depend on the summer, because most of the winter we are not that busy. Tourism is quiet,” Tabar said.

Adam Yazdi, the owner of Canadian Rides on Fallsview Boulevard, says he opened his shop about five months ago but has not seen as many customers as he expected, adding that he believes part of the reason has to do with the U.S.-Canada trade war situation.

“We see less Canadian people spending money, trying to purchase. They question more about the prices. And you can see in their face they’re scared. They’re afraid to spend money,” Yazdi said.

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According to a new study released by the Canadian Federation of Independent Business (CFIB), about 60 per cent of small business owners are concerned that the U.S.-Canada trade dispute is affecting spending habits.

Vice President of CFIB Louis-Philippe Gauthier says consumers are looking for cheaper options.

“They’ve noticed that visitors have a tendency to go and find lower cost opportunities for their vacations,” Gauthier said.

But the CFIB says when Canadians spend their cash locally it goes a long way in our communities.

“We’re hoping and asking consumers to be conscious consumers because every dollar that you spend, if you spend it at a locally owned Canadian business, $0.66 will stay within the local community and the province, compared to $0.11 if they spend it inside of a multinational box store, for example,” Gauthier said.

And when it comes to travelling outside of Canada, the study also found that only 11 per cent of respondents are travelling or looking to travel to the U.S. this summer.

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