Michigan’s rural Upper Peninsula sits at the heart of America’s escalating trade war with Canada, where the regular cross-border exchange of goods and tourists underpins daily economic life.

The region, known as the UP, is home to residents called “Yoopers,” who are already contending with high grocery and goods costs compounded by record-high diesel fuel prices.

Getting to the UP is difficult under normal circumstances, as it is accessible only by two bridges and a land border with Wisconsin, meaning shipping and transportation costs run persistently high.

President Trump’s decision to impose a 50% tariff on nearly $20 billion in Canadian goods has intensified pressure on local businesses and could shape a competitive U.S. Senate race that may prove pivotal to the balance of power in November.

The last Democrat to represent the UP in Congress was Bart Stupak, who left office in 2011, making this traditionally Republican territory an unlikely but significant political battleground.

Ben Rahilly, who owns an appliance store, a gift shop, a furniture store, and a concrete business in Newberry, Mich., says running a small business in a county of around 5,300 people was already tough before tariffs entered the picture.

“Prices are going up. Our shipping charges are getting more and more every day. The cost of just goods is going up, so it’s making it tougher on our profit margins,” Rahilly said, adding that he is trying to “keep it small town, small prices so people can afford to keep shopping with us.”

Rahilly, who leans conservative, voted for Trump but expressed frustration with the trade war, saying, “You got, right now, our president in a pissing match with Canada. Well, we do a lot of business with Canada, surprising enough.”

He added that while he supports the idea of American-made goods, the country lacks the workforce to make that a near-term reality, saying, “We just have to be able to work with them countries.”

Tony Haller, executive director of the Sault Area Chamber of Commerce in Sault Ste. Marie, Mich., said there is “certainly a sense of frustration between both communities” on either side of the International Bridge connecting the city to its Canadian sister city.

Commercial and passenger traffic across the International Bridge is down by roughly a quarter since Trump’s second term began, and the International Bridge Administration estimates businesses on the Michigan side are missing out on $62.7 million in lost revenue.

“Speaking from Sault Michigan’s point of view, we’re pretty solid all year round, but because of the bridge traffic being down, I know our businesses aren’t quite as busy as they should be,” Haller said, expressing hope for a return to “some sort of normalcy.”

The federal government reports that over a third of all Michigan exports go to Canada, a figure that equated to more than $21 billion last year, making the state uniquely exposed to the consequences of a prolonged trade dispute.

Todd Campbell, a trucking company owner from near Knoxville, Tenn., visiting the Soo Locks in Sault Ste. Marie, said he is not pleased with the direction of the tariff dispute, despite generally supporting Republican policies.

“That doesn’t mean I’m lockstep with every decision they make, to be honest with you,” Campbell said, describing the tariff standoff as an example of both political parties being “really out for themselves” while ordinary Americans “get caught in the middle.”

Homer Coleman, an Independent voter and trucker from metro Detroit vacationing in the UP, said he was baffled by the president’s posture toward Canada, stating, “He seemed like he wants to pick a fight with everybody, and he shouldn’t be picking a fight with Canada of all people.”

Retired engineer Don Laban from Muskegon, Mich., who described himself as a middle-of-the-road voter, said he supports the president’s push to rebalance trade but criticized Democrats for failing to articulate a positive vision, saying, “Don’t tell me who not to vote for. Tell me why I should vote for you.”

Canada is set to impose countertariffs on the United States later this month, a move that could further strain cross-border commerce and deepen the political anxieties already spreading across Michigan’s Upper Peninsula.