Residents of Campobello Island in New Brunswick can now bring back groceries and household items from the United States without paying tariffs, following a new federal exemption that acknowledges the island’s unusual geography and reliance on U.S. access.
Blacklock's Reporter says the Department of Finance confirmed the exemption in a regulatory notice, citing the island’s year-round dependence on cross-border travel for basic needs.
“As the Island has limited supplies and is only accessible by automobile via the United States for most of the year, it’s nearly 1,000 residents have no practical choice but to depend on purchasing their day to day household products and groceries in the United States,” said the Regulatory Impact Analysis Statement.
Campobello’s population of 949 now benefits from a tariff waiver retroactive to April 9. The exemption applies to goods brought back from the U.S. by residents after being away from Canada for less than 24 hours, provided those items are for personal or household use and in their possession at the time of entry.
The move is Canada’s first permanent tariff waiver since the imposition of retaliatory tariffs in response to former U.S. President Donald Trump’s 2018 trade measures, which included a 25% levy on Canadian goods and metals.
Most Campobello Islanders shop in Lubec, Maine, just across the Franklin Delano Roosevelt Memorial Bridge, as the island lacks a direct Canadian road link for much of the year.
The island famously served as the summer retreat of President Roosevelt, who contracted polio there in 1921.
Finance officials said the measure ensures residents won’t face rising costs on essential items due to their daily need to cross the border. Although no estimate was provided, the exemption is expected to reduce the financial burden on the island's residents, who had previously been subject to tariffs on routine purchases.
