Dearborn Cafés, Suppliers and Automakers Scramble as US-Canada Tariff Fight Hits Cross-Border Trade

In Dearborn, Michigan — home to the largest Arab American community in the United States — Yemeni cafés have emerged as a prominent local industry. Leading that surge is Qahwah House, a growing chain that now operates 32 locations nationwide, three of them in Dearborn. The chain estimates roughly 10% of its Dearborn revenue comes from Canadian customers and has paused plans to open a branch in Toronto amid growing US-Canada trade tensions.

Expansion On Hold Amid Tariff Dispute

In July, President Donald Trump announced 50% tariffs on certain Canadian imports. Ottawa responded with reciprocal sanctions that took effect on 8 September. The escalation and uncertainty have prompted Qahwah House to delay its Toronto launch despite registrations and licenses already in place. "For now, we're holding off just to make sure it's a feasible move to expand," says Mohamed Ahmed, the chain's marketing director.

"We estimate that around 10% of our Dearborn business comes from Canadian customers."

Cross-Border Customers And Local Impact

Canada is Michigan's largest trading partner, and border communities such as Dearborn — just minutes from the nearest crossing — rely heavily on Canadian visitors. Visit Detroit reports Canadian visitation to the Detroit region is down about 30% since early 2025, a drop local businesses say has hit restaurants and other hospitality services hard.

Across the river in Windsor, Ontario, roughly 25,000 residents of Arab descent have long been a steady source of customers for Dearborn's cafes and restaurants. Robert Nelson, a history professor at the University of Windsor who studies cross-border food culture, says many Arab Canadians still make the trip for the authentic Arabic-language atmosphere, but some are choosing to travel less as a symbolic protest or to support local businesses.

Small Businesses, Big Stakes

Longstanding local businesses say many regular Canadian customers remain loyal. Khader Masri, owner of Masri Sweets on Schaefer Road for more than 35 years, notes: "There are five or six families who come over here that I know of — one came from London, Ontario, last weekend. They are still coming." Nelson adds that the region's economic and social ties make a complete boycott of cross-border visits unlikely.

Still, broader industry data point to strain: an April report from the Michigan Restaurant and Lodging Association found that more than half of the state's restaurants reported falling sales, a share considerably higher than the national figure of 39%.

Wider Economic Exposure

The tariff dispute is not limited to eateries. Major manufacturers with integrated North American supply chains — including Ford Motor Company, which employs thousands at its Rouge plant in Dearborn — have also felt the effects of increased trade friction.

Practical business decisions are reflecting the uncertainty. Ahmed says Qahwah House has postponed buying furniture from a Canadian supplier because "there's just been too much uncertainty." Several local restaurateurs declined to comment publicly about customers from Canada because of the politics around the dispute; others said they do not track customers by origin.

Resilience Amid Diplomatic Noise

Despite the tensions, communities on both sides continue to show resilience and maintain social ties. Observers emphasize that daily travel for work, family and leisure often outweighs political disagreements, and many customers continue to cross the border for the food and atmosphere that Dearborn offers.

What Remains Clear: The tariff dispute is introducing uncertainty that affects planning, supply decisions and visitor flows. Small businesses that depend on cross-border customers face tangible risks, while larger manufacturers confront potential supply-chain disruptions.