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Economic disaster in Old Orchard Beach, as trade war between the US and Canada threatens local businesses

Perlina Rossi-Brown

2025-03-30 12:27:14

Credit: CNN/Getty Images

Approximately 40% of tourists in Old Orchard Beach, Maine, come from Canada, representing between 30 and 40% of the revenue of many local businesses, according to the town’s Chamber of Commerce.

Between trade war and annexation threats

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However, between the trade war with the United States and the annexation threats launched by American President Donald Trump, many Canadians are saying goodbye to their trip in the USA.

90% of Point of View Inn reservations canceled

This is what entrepreneur Sterling Morse, owner of the Point of View Inn, an inn in Old Orchard Beach located about 240 kilometers from the Canadian-American border, has found. He told Global News that more than 90% of his bookings for the summer season have been suspended or completely canceled.

The majority of customers are Quebecers

The majority of customers of this family business, over 50 years old, are Quebecers. ‘Some have been coming here for 35, even 40 years,’ Mr. Morse said in an interview with CNN. He added that he might eventually have no choice but to close and sell the inn.

The anger is 'justified'

Mr. Sterling explained to CNN that after having studied in Montreal, he feels a true family bond with the Canadians. According to him, the anger is ‘justified’ and their renewed nationalism is positive.

A CNN interview went viral

However, Morse told Global News that he thinks he can save his season after his interview with CNN, which went viral since its post on March 20. This media coverage has led to an influx of reservations from people, both Canadian and American, wanting to help him save his business from bankruptcy.

We are friends, families, neighbors.

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He also claimed to have succeeded in changing the minds of some regular customers: «We are friends, families, neighbors. […] We can’t break that.»

100 cancellations at Paradise Park Resort

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For his part, Mike Halle, director of the Paradise Park Resort, told Global News: “We have over 100 cancellations, which represents a significant increase, of about 250% compared to the normal for this time of year.”

“We are really powerless.”

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“We just wish it would all go away”, explained JJ Mokarzel, owner of the On The Beach Hotel. “It’s sad when elite people affect the common people, because we are really powerless.”

12 to 15 weeks

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Old Orchard Beach is a seasonal town. Businesses therefore have about 12 to 15 weeks to make benefits. Canadian-American tensions truly have significant repercussions on the municipality.