Qahwah House, a leading Yemeni cafe chain, has paused its planned expansion into Canada due to the recent downturn in relations between the Trump administration and Canada. The company, which has 32 branches across the US, including three in Dearborn, Michigan, was preparing to open a location in Toronto.
Tariffs trigger uncertainty
Donald Trump announced 50% tariffs on Canadian imports in July, following his repeated suggestions that Canada become a US state. This has created uncertainty for Qahwah House's expansion plans.
“We have our registrations, license, everything in place to open up in Canada. For now, we’re holding off just to make sure it’s a feasible move to expand,” said Mohamed Ahmed, marketing director at Qahwah House. “There are a lot of super recent changes, so we’ll see how that plays out.”
Ahmed estimates that around 10% of the company's Dearborn business comes from Canadian customers.
Decline in Canadian visitors
Canada is Michigan's largest trading partner, and Dearborn, located just a five-minute drive from the nearest border crossing, relies heavily on Canadian customers. Since early 2025, Canadian visitation to the Detroit region has dropped about 30%, according to Brett McWethy of Visit Detroit.
Ottawa announced reciprocal sanctions on US imports that took effect on 8 September, and talks last month failed to resolve the differences between the two countries.
Robert Nelson, a history professor at the University of Windsor, noted that Arab Canadians are split in their response. “Those who go to Arabic restaurants in Dearborn are overwhelmingly Arab Canadians,” he said. “Now, if you have family or work [in Dearborn] you’re not stopping crossing the border because of politics. But there are members of the Arab community in Windsor who are traveling less, who speak about supporting local.”
Community resilience amid political tensions
Despite the challenges, some businesses report loyal Canadian customers. Khader Masri, owner of Masri Sweets on Dearborn's Schaefer Road for over 35 years, said his Canadian patrons have mostly remained. “There are five or six families who come over here that I know of – one came from London, Ontario, last weekend,” he said. “They are not thinking of any of that [political] commotion.”
Nelson echoed this sentiment. “Our lives are so intertwined with greater Detroit that it is no simple political act to say: ‘I’m not going to cross the border any more,’” he said. “To punish the small business owners who rely so heavily on Canadian customers because of the current administration also strikes me as a very difficult argument to make.”
Ahmed expressed confidence in Canadian customers' discernment. “I think the Canadians are smart enough to disassociate whatever president [Trump] says versus not coming here to visit the states for work or leisure,” he said.
Dearborn's chamber of commerce reported no struggling businesses due to fewer Canadian visitors, though some restaurant owners declined to comment. A report from April by the Michigan Restaurant and Lodging Association found more than half of the state's businesses reported declining sales, above the national level of 39%.
Ahmed added that the political decline has led his company to hold off on buying furniture from a Canadian supplier. “There’s just been too much uncertainty,” he said.
