Initially a subtropical depression north of the Bahamas, Gustav passed slightly to the east of the Outer Banks of North Carolina as a tropical storm before moving northeastward and making two landfalls in Atlantic Canada as a Category 1 hurricane. The storm was responsible for one death and $100,000 in damage, mostly in North Carolina. The interaction between Gustav and a non-tropical system produced strong winds that caused an additional $240,000 (2002 USD) in damage in New England, but this damage was not directly attributed to the hurricane.