How Canadian tariffs could impact tourism to the US

President Donald Trump has launched a trade war against Canada by levying 25% tariffs on the country's goods, and some Canadians are now preparing to abandon their vacation plans to the U.S. in protest. This could have a significant impact on the American tourism sector, as Canadians comprise a substantial percentage of the U.S.' travel revenue.

This impact will largely be felt by the states bordering Canada but also by additional states where Canadians travel for warmer weather. And Canada is not the only country whose tourists may cancel their next trip to the U.S.

Canadians have a heavy impact on American tourism

If Canadians stop traveling to the U.S., it could mean a large reduction in revenue for the American tourism industry. Canada is the "top source of international visitors to the United States, with 20.4 million visits in 2024, generating $20.5 billion in spending and supporting 140,000 American jobs," according to the U.S. Travel Association. A decrease of just 10% in Canadian travel to the U.S. could result in "2.0 million fewer visits, $2.1 billion in lost spending and 14,000 job losses."

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The top five most-visited states by Canadians are California, Florida, Nevada, New York and Texas, and they could all "see declines in retail and hospitality revenue, as shopping is the top leisure activity for Canadian visitors," said the U.S. Travel Association.

Urging alternate plans

As Trump's tariffs continue, many Canadians, including Canadian Prime Minister Justin Trudeau, are urging their fellow countrymen to find alternate travel plans. This is the "time to choose Canada," Trudeau said during a press conference following the tariff announcement. Beyond buying Canadian-made products, Trudeau added this "might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites and tourist destinations our great country has to offer."

It seems that many Canadians are heeding Trudeau's advice. "I've decided that I will no longer be traveling to the U.S. unless it's absolutely necessary to go," said Harold White of Quebec, who canceled his annual trip to Maine, to The New York Times. This "time around, really, I feel like Canadians have been slapped across the face by Trump."

Canadians are "starting to pivot away and avoid the U.S.," Alexis von Hoensbroech, the CEO of Canadian airline WestJet, said to the Times. There has been an "increase of bookings into Mexico, into the Caribbean, into other non-U.S. destinations." Other airlines have said the same: "We are anticipating proactively that there could be a slowdown," Air Canada Vice President Mark Galardo said to the Times.

For states near the Canadian border, the signs of a "Canadian tourist backlash are cropping up from accommodations in Vermont to campgrounds in New Jersey," said NPR. Hotel bookings are also down in another sign of the times: Bookings "decreased 8% year over year in Niagara Falls, New York, and 12% in the Bellingham area of northwest Washington, about 50 miles south of Vancouver." Niagara Falls is one of Canada's and the U.S.' most popular attractions and reportedly gets 12 million visitors per year.

Canada may not be the only country affected by these tourism shifts, as other nationalities consider slowing down their U.S. travel, too. There has been an uptick in "people heading to Canada's East Coast, Mexico, Portugal and Antigua in recent weeks" instead of the United States, Amra Durakovic from the travel agency Flight Centre said to the CBC.