Caught in the middle, this US oddity at the border is grappling with Trump's trade war with Canada

POINT ROBERTS, Wash. (AP) — In the northwest corner of Washington state lies a quirky U.S. exclave so dependent on Canada’s goodwill that the strain of President Donald Trump’s tariff war is inescapable — in the sole grocery store, at any of the three eateries, and for the many residents who never voted for him.

Locals and visitors alike in Point Roberts, Washington, are increasingly worried about how this unusual waterfront border town that has embodied the two countries’ interdependency can survive the hostility brewing on both sides.

“This was really devastating,” said Tamra Hansen, a longtime Point Roberts resident and business owner whose eyes welled with tears as she described her two restaurants on the brink. “If we don’t get the support from the Canadians, this town will die.”

Known as a geographic oddity since the boundary with Canada was drawn in 1846, this detached 5-square-mile community — called an exclave because it’s completely separated from mainland America — is surrounded by water on three sides. Its only land connection is to Canada and it takes one border crossing and about 25 miles north by car to get to downtown Vancouver, B.C.; or two border crossings and about 25 miles through Canada to re-enter the United States along Boundary Bay.

The beaches, marina, golf course and hiking trails have long made Point Roberts a cherished getaway destination, but today locals say business has never been worse. Canadian visitors are staying away and some American residents say they’ve even been harassed over their nationality.

Point Roberts Fire Chief Christopher Carleton said Point Roberts is one the last remaining untouched natural gems of the United States, but the tight-knit community with no stop lights is now under threat by politicians who know nothing about their way of life.

“We need to take care of one another and have grace for one another and not allow people who don’t even know we exist to disrupt the relationships we currently have,” said Carleton, whose firefighters mostly live across the border.

Tensions between the U.S. and Canada have spiked to a level not seen before in modern times thanks to Trump’s on-again, off-again threat over the past two months to place taxes on a long list of goods going across the border. In response, Canada has promised retaliatory tariffs.

For a population that has famously prided itself on being nice, polite and loyal allies, Canadians aren’t hiding their disgust for Trump’s polarizing rhetoric, especially taking offense with the U.S. president’s claim that Canada could be the “ 51st state.”

Mark Nykolaichuk said he refuses to go to the mainland U.S. but describes Point Roberts as a unique exception because the border here has never felt like an actual divide for Canadians like him who grew up visiting.

Most of the property owners here are from Canada, and many of the 1,000 year-round residents have dual citizenship. Once a booming fishing town, the leading industry now, according to U.S. Census data, is retail — primarily driven from tourism because of the number of vacation properties. The unincorporated Whatcom County community is now mostly home to retirees, though this year there are seven students — nicknamed “The Borderites" — at the lone public school.

Nykolaichuk, who lives in the Vancouver, B.C. area, said he hopes he can help keep the Point Roberts International Marketplace open by shopping there, given that management reports business is down 20% to 30%. He depends on Point Roberts’ only grocery store to be able to cook at his vacation home because U.S. customs doesn’t permit raw meat to enter its borders, for example, so he must buy it in town.

“Nobody wants to see this place shut down,” Nykolaichuk said. “If this place goes, where are the U.S. citizens going to eat? Where are they going to get their food from?”

Many in Point Roberts don’t blame the Canadians for their disdain over Trump’s perceived sovereignty threat. Instead, there’s a deep sadness for both sides.

“We’ve always gotten along and it’s just nonsensical because now the U.S. is going to suffer too,” said Hansen, who is a dual citizen. “I definitely feel for the Canadian people at this time because they’ve got their backs against the wall, really, and they have to retaliate.”

Like many locals, Larry Musselwhite, owner of Larry’s Liquor Locker, is angry at Trump and blames the president for Point Roberts’ economic problems. The 75-year-old said he can’t even think about retiring right now because of the economy. His liquor store was down 40% in sales last month.

“This is because of our elected president, who really doesn’t care about the common man and the struggles that we have to go through,” Musselwhite said. “It greatly affects how I live my life.”

About 75% of the Point Roberts precinct voted for a presidential candidate other than Trump, which is a higher percentage than across Whatcom County as well as the statewide turnout, according to the 2024 election results.

Locals say one of the most frustrating things about the tit-for-tat is the way that the tariffs have abruptly started and stopped, creating an unsteady flow of changes to customs. The whiplash for residents who often cross the border multiple times a day leaves them unsure whether or when they’ll be surprised with a new penalty.

This fear over unexpected tariff fees has made people cautious about buying things in Point Roberts — if they’re coming into town at all.

Hugh Wilson, a real estate agent who also manages several local Airbnb listings, said properties have seen more cancellations than bookings lately.

“Nobody is sure of the rules at any one day here,” Wilson said. “The border agents do the best they can to stay up to date and they relay that to us as normal people crossing the border.”

With no end in sight, there’s also a high-stakes fear that the dispute could escalate with Canada possibly imposing tariffs on the water and electricity that it supplies to Point Roberts, or even turning off the utilities altogether.

“If it gets more brutal, they can cut off the water just like that, or the power,” said Brian Calder, a fourth-generation resident who was previously the president of the Point Roberts Chamber of Commerce. “And it just depends how much more confrontation is fomented by Trump’s office.”

Calder said he and other town leaders are trying to plead for help with the British Columbia premier and the governor of Washington state. He said the local Whatcom County leadership has all but abandoned this far-away community in a time of crisis.

Jed Holmes, a spokesman for the county, said they are communicating with Washington state's congressional delegation in D.C. to address the rapid deterioration in U.S.-Canada relations that has especially affected Point Roberts.

“I understand that folks want us to do more, but it’s really challenging to identify what meaningful things a county government can do to change this dynamic at the international level,” Holmes said in an email.

For Hansen, she’s asking herself how much more can she afford to lose personally while running the Saltwater Cafe breakfast spot and a restaurant called The Pier. She has 15 employees to pay but business was down 55% in February compared with last year. There have been times when her pub doesn’t even net $100 a day.

“There are some businesses that are going out of business right now as we speak,” Hansen said. “It’s very emotional for me because I care about everybody that lives here.”

People walk on the Canadian side of Maple Beach during low tide, with the international boundary line marked by a cement tower at left, Tuesday, March 18, 2025, as seen from Point Roberts, Wash., with Burnaby, British Columbia, Canada in the background. (AP Photo/Lindsey Wasson)

A sea lion rests on a dock at the town's marina Monday, March 17, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A bicyclist approaches the Nexus lane at the border crossing checkpoint into Delta, British Columbia, Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Brian Calder, a fourth-generation resident and dual citizen, poses for a portrait at a historic international boundary marker between the United Sates and Canada, Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Community members gather after a morning walking group at the Point Roberts Community Center, Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A shopper at the Point Roberts International Marketplace inspects a bag of oranges Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Owner Beth Calder sorts packages at Point to Point Parcel, her shipping and receiving business that mostly caters to Canadians and has seen a significant downturn this year, Monday, March 17, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A cash register at the Point Roberts International Marketplace has two trays for both Canadian and U.S. currencies, Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Brian Calder, a fourth-generation resident and former chamber of commerce president, talks with Rich Swanson, center, and Mark Nykolaichuk, right, at the Point Roberts International Marketplace, Monday, March 17, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Tamra Hansen, a dual citizen of Canada and the United States, poses for a portrait at her restaurant, The Pier, which is down over fifty percent in sales compared to last year, Monday, March 17, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Larry Musselwhite, owner of Larry's Liquor Locker, answers a call from a Canadian citizen asking if they can still buy alcohol from his store and bring it back to Canada, Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A Trump 2024 flag flies Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A customized LED sign on the back of Ray Scott Capani's car scrolls with the message "Trump is a buffoon," along with messages of support for Canada, Monday, March 17, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

The international boundary line between Canada, at left, and the United States, at right, is marked by towers in the waters of Boundary Bay reaching to the Peace Arch border crossing and by clear cut trees in the North Cascade mountains, Tuesday, March 18, 2025, as seen from Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A driver passes by a small Statue of Liberty replica outside a home Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A pair of bald eagles rest in a tree Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A sign and boundary marker behind a house in Delta, British Columbia, denote the international boundary line between the United States and Canada, Tuesday, March 18, 2025, as seen from Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Houses in the Tsawwassen area of Delta, British Columbia, are seen from Maple Beach in Point Roberts, Wash., with a concrete tower to mark the border on the waters of Boundary Bay, Monday, March 17, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Real estate agent Hugh Wilson, who says Airbnb listings he manages have faced a higher cancellation rate than usual, stands for a portrait at an Airbnb overlooking Boundary Bay and British Columbia in the distance on Maple Beach, Monday, March 17, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Towers in the water denote the international boundary line between Canada, at left, and the United States, at right, as a car approaches the border checkpoint heading into Canada, Tuesday, March 18, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

Tamra Hansen, a dual citizen of Canada and the United States who runs two of the three restaurants in town, poses for a portrait outside The Pier, Monday, March 17, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A worker at The Pier, one of three restaurants in town, readjusts Canadian and American flags hanging outside the business, Monday, March 17, 2025, in Point Roberts, Wash. (AP Photo/Lindsey Wasson)

A federal appeals panel on Thursday reversed a lower court decision that released former Columbia University graduate student Mahmoud Khalil from an immigration jail, bringing the government one step closer to detaining and ultimately deporting the Palestinian activist.

The three-judge panel of the 3rd U.S. Circuit Court of Appeals didn’t decide the key issue in Khalil’s case: whether the Trump administration’s effort to throw Khalil out of the U.S. over his campus activism and criticism of Israel is unconstitutional.

But in its 2-1 decision, the panel ruled a federal judge in New Jersey didn’t have jurisdiction to decide the matter at this time. Federal law requires the case to fully move through the immigration courts first, before Khalil can challenge the decision, they wrote.

“That scheme ensures that petitioners get just one bite at the apple — not zero or two,” the panel wrote. “But it also means that some petitioners, like Khalil, will have to wait to seek relief for allegedly unlawful government conduct.”

Thursday’s decision marked a major win for the Trump administration’s sweeping campaign to detain and deport noncitizens who joined protests against Israel.

Tricia McLaughlin, a Homeland Security Department spokesperson, called the ruling “a vindication of the rule of law.”

In a statement, she said the department will “work to enforce his lawful removal order” and encouraged Khalil to “self-deport now before he is arrested, deported, and never given a chance to return.”

It was not clear whether the government would seek to detain Khalil, a legal permanent resident, again while his legal challenges continue.

In a statement distributed by the American Civil Liberties Union, Khalil called the appeals ruling “deeply disappointing."

“The door may have been opened for potential re-detainment down the line, but it has not closed our commitment to Palestine and to justice and accountability," he said. "I will continue to fight, through every legal avenue and with every ounce of determination, until my rights, and the rights of others like me, are fully protected.”

Baher Azmy, one of Khalil's lawyers, said the ruling was “contrary to rulings of other federal courts."

“Our legal options are by no means concluded, and we will fight with every available avenue,” he said.

The ACLU said the Trump administration cannot lawfully re-detain Khalil until the order takes formal effect, which won't happen while he can still immediately appeal.

Khalil’s lawyers can request that the panel's decision be set aside and the matter reconsidered by a larger group of judges on the 3rd Circuit Court of Appeals, or they can go to the U.S. Supreme Court.

An outspoken leader of the pro-Palestinian movement at Columbia, Khalil was arrested last March. He then spent three months detained in a Louisiana immigration jail, missing the birth of his first child.

Federal officials have accused Khalil of leading activities “aligned to Hamas,” though they have not presented evidence to support the claim and have not accused him of criminal conduct. They also accused Khalil, 31, of failing to disclose information on his green card application.

The government justified the arrest under a seldom-used statute that allows for the expulsion of noncitizens whose beliefs are deemed to pose a threat to U.S. foreign policy interests.

In June, a federal judge in New Jersey ruled that justification would likely be declared unconstitutional and ordered Khalil released.

President Donald Trump's administration appealed that ruling, arguing the deportation decision should fall to an immigration judge, rather than a federal court.

Khalil has dismissed the allegations as “baseless and ridiculous,” framing his arrest and detention as a “direct consequence of exercising my right to free speech as I advocated for a free Palestine and an end to the genocide in Gaza.”

New York City’s new mayor, Zohran Mamdani, said on social media Thursday that Khalil should remain free.

“Last year’s arrest of Mahmoud Khalil was more than just a chilling act of political repression, it was an attack on all of our constitutional rights,” Mamdani wrote on X. “Now, as the crackdown on pro-Palestinian free speech continues, Mahmoud is being threatened with rearrest. Mahmoud is free — and must remain free.”

Judge Arianna Freeman dissented Thursday, writing that her colleagues were holding Khalil to the wrong legal standard. Khalil, she wrote, is raising “now-or-never claims” that can be handled at the district court level, even though his immigration case isn't complete.

Both judges who ruled against Khalil, Thomas Hardiman and Stephanos Bibas, were Republican appointees. President George W. Bush appointed Hardiman to the 3rd Circuit, while Trump appointed Bibas. President Joe Biden, a Democrat, appointed Freeman.

The two-judge majority rejected Freeman's worry that their decision would leave Khalil with no remedy for unconstitutional immigration detention, even if he later can appeal.

“But our legal system routinely forces petitioners — even those with meritorious claims — to wait to raise their arguments," the judges wrote.

The decision comes as an appeals board in the immigration court system weighs a previous order that found Khalil could be deported to Algeria, where he maintains citizenship through a distant relative, or Syria, where he was born in a refugee camp to a Palestinian family.

His attorneys have said he faces mortal danger if forced to return to either country.

Associated Press writers Larry Neumeister and Anthony Izaguirre contributed to this story.

FILE - Palestinian activist Mahmoud Khalil holds a news conference outside Federal Court on Tuesday, Oct. 21, 2025 in Philadelphia (AP Photo/Matt Rourke, File)