U.S. Entry Tax Proposal Drawing Fire From Home and Abroad : Immigration: Border regions fear loss of business. Canadians regard the idea as unneighborly.

Canadians and Mexicans, with their U.S. buying power already diminished by weak currencies, may have a new reason to stay home: the border tax proposed by President Clinton.

The tax, suggested as a way to help pay for beefed up border enforcement, would also keep out many legitimate visitors, critics said Wednesday.

U.S. retailers, sports teams and other border businesses say the fees--$3 per cars and $1.50 for each pedestrian entering the United States--would deter foreign tourists and shoppers and spoil the spirit of the North American Free Trade Agreement.

“It does send a message that we’re not welcoming the Canadian customers the way we used to,” said Mary Kamien at Benderson Development Co., which runs plazas in Niagara Falls, N.Y., where many Canadians come to shop.

“This kind of fee is ludicrous,” said Charles Steiner, who heads the Niagara Falls Chamber of Commerce. “It’s this type of thing confronting visitors that drives them away. They just won’t come in our direction.”

Canada views the proposal as downright unneighborly. The Canadian government has said it might retaliate with fees of its own.

“Our two countries interact at every level, and we’ve been coming closer and closer together,” said Rob Mckenzie, who heads the Canadian Consulate in Buffalo, N.Y. “All of a sudden, to take a huge hit like this--I think it’s unjustified, not to mention unfriendly.”

Hockey and football teams such as Buffalo’s Sabres and Bills and Detroit’s Red Wings and Lions pack in thousands of Canadian fans, who already are paying ticket, parking and border-tolls that can add up to $50 a person.

“To pay $3 at the border--that’s just more money for fans to come up with,” said Lions spokesman Dan Arthur. “It might discourage some from coming over.”

Canadians made about 50 million car trips to the United States last year, according to Statistics Canada, a government agency. That total was down 50% from about 75 million car trips in 1991.

The Canadian dollar was closer in value to the U.S. dollar then--nearly 90 cents--making American goods cheaper for Canadians. Canada’s dollar now is near an all-time low, trading at 71.6 cents Wednesday.

The Mexican peso is in far worse shape since its collapse last December.

About 138 million people entered the United States via the Mexican border last year, according to U.S. immigration officials. Many came to shop, but the weak peso coupled with new border fees could reduce the number drastically, said Robert Hole, a consultant for U.S. businesses along the Mexican border.

“Americans aren’t going to care about paying, but it would really hurt the Mexicans,” Hole said. “A dollar-fifty is a lot to them. It’s pocket change to us.”

Members of Congress from border states, including Sens. Daniel Patrick Moynihan (D-N.Y.) and Phil Gramm (R-Tex.), said they would work against the border tax.