For 65-year-old Louis Patenaude, the escalating trade conflict between the United States and Canada is more than just a political debate; it is a complication that sits directly under his roof. His business, Half-Way House Freight Forwarding, is uniquely positioned: one end of the three-story structure is located at 228 Dundee Road in Fort Covington, New York, while the other sits at 8777 Route 132 in Dundee, Quebec. A thick black line painted across the floor serves as the literal boundary between the two nations. Made possible by a geographic quirk, patenaude’s business is a simple one. Patenaude, 65, has roots on both sides.
This location has long thrived on the convenience afforded by decades of open trade and mutual trust, allowing residents to bypass excessive shipping fees by having items delivered to the border. However, this historic relationship is currently under significant strain. Following the collapse of trade negotiations in late August, both nations have introduced retaliatory measures. Washington recently imposed 50% tariffs on approximately $20 billion worth of Canadian goods, while also announcing plans to double duties on Canadian automobiles and parts starting January 1, alongside an executive order renaming Lake Ontario to Lake America. That historic relationship is falling apart, but like the building’s chipping paint and 100-year-old clapboards.
In response, Ottawa has pledged to double duties on American steel and aluminum beginning September 8, with additional tariffs targeting U.S. paper products, home appliances, construction materials, and agricultural goods. Prime Minister Mark Carney stated that the new U.S. measures are intended to hurt and divide the country. Patenaude, who runs the shop as a service for local customers importing everything from Amazon packages to engine transmissions, views the situation as primarily political. He noted that while he could theoretically expand his operation by obtaining a customs broker license, the building itself is in need of major repairs and is currently listed for sale at $350,000 for each of the two parcels. Patenaude’s small operation isn’t at the center of some of the most contested industries. Baked into everything from heavy machinery to mundane trinkets, will be hard to suddenly unwind, and he’s convinced that these trade partnerships.
The financial impact of these policies remains uncertain for small operators and their customers. Economists generally agree that the cost of tariffs is largely borne by consumers and businesses rather than the exporting nations. Research from the Bank of Canada in May 2025 found that previous retaliatory tariffs led to price increases of approximately 6% on affected goods, with costs rising based on how long retailers expected the disputes to last. Customers at the Half-Way House, who must still clear their items at a customs office about 100 feet away, have begun questioning how much their import costs will increase. He can’t do much about that, he said, if he loses business because everyday items get too expensive.
Experts suggest that while border communities are historically less affected by nationalistic rhetoric, rising prices could act as a catalyst for changing consumer behavior. Joseph Steinberg, an international economics expert at the University of Toronto, noted that unless individuals are forced to change their habits due to the mounting costs, their reliance on cross-border logistics is unlikely to shift drastically. Yet, the uncertainty surrounding the current trade environment has left even seasoned operators like Patenaude unsure of what to expect as the two countries drift further apart.
The Half-Way House property has a history dating back over 200 years. Patenaude’s grandfather acquired the building in the 1960s to operate as a hotel, and his father, Paul Maurice, later managed the property. During that time, the owner frequently navigated the complexities of dual taxation, paying both Canadian business taxes and U.S. school and land taxes. Although the bar operation closed in the 1990s, the unique address eventually inspired the launch of the freight-forwarding shop, which now serves roughly 3,000 customers from across the region. Turns out, it’s convenient to have Patenaude’s place nearby if you’re Canadian and want to buy something that only ships within the US.
