American businesses along the northern border are facing a grim winter, and it’s not just the weather that’s biting. New data and testimony from lawmakers and business owners paint a stark picture: Canadian tourism to the United States has plummeted, hitting local economies hard, especially in border states. According to a report released December 10, 2025, by the Democrat minority of the U.S. Congress’s joint economic committee, the sharp decline is directly tied to recent actions and rhetoric from U.S. President Donald Trump, including tariffs and diplomatic provocations that have soured relations with America’s closest neighbor.
In 2024, Canadian visitors contributed a whopping $20.5 billion to the U.S. economy, supporting 140,000 American jobs, as stated in the congressional report cited by CBC. But between January and October 2025, the number of passenger vehicles crossing the border fell nearly 20% compared to the previous year. The drop-off was felt everywhere from Alaska (down over 10%) to Vermont (down more than 28%). State officials, business owners, and even ferry operators say the impact is visible in empty hotel rooms, vacant parking lots, and shrinking payrolls.
Senator Maggie Hassan, a Democrat from New Hampshire and ranking member of the committee, didn’t mince words about the situation: “Going back for generations, Canadians have visited New Hampshire and many other states along the U.S.-Canada border to see family or friends, stay in our hotels, share a meal at our restaurants and shop at our stores,” she said in a statement. “However, in the wake of President Trump’s reckless tariffs and needless provocations, fewer and fewer Canadians are making trips to the United States, putting many American businesses in jeopardy and straining the close ties that bind our two nations.”
The committee’s eight-page report, made public just days ago, details the economic toll with state-by-state data and testimonials. In New Hampshire, for example, Canadian visitors dropped by 30%, and reservations for state-run campgrounds plunged 71% in the first five months of 2025. One hotel in North Conway reported 30% of its rooms sat empty during weekends that typically sell out. Kyle Daley, owner of Soloman’s Store in West Stewartstown, said, “The friction at the border is no longer just a headline; it is an empty parking lot and a threat to our livelihood.”
Maine’s woes were just as pronounced. Border crossings by Canadian passenger vehicles fell about 25% in the first 10 months of 2025. The CAT Ferry, connecting Bar Harbor and Nova Scotia, saw business drop 20% over the summer. Moshe Agam, who runs a business in Old Orchard Beach, described the season as disastrous: “It’s like a 50 percent [drop off] because not too many Canadians.… The worst year we’ve had. We’ve never had a year like that, even worse than COVID.”
Montana, a state where Canadians made up nearly 80% of international visitors in 2024 and contributed $170 million to the local economy, saw border crossings drop 19% in the first 10 months of 2025. Some businesses reported a 25% drop in Canadian travel and a 44% decrease in Canadian credit card spending. One Montana hotel lost $38,000 after a Canadian sports team canceled a reservation for 70 rooms and a 200-person dinner. Diane Medler, executive director of Discover Kalispell, told the committee, “We need signals from both governments that cross-border friendships and economic partners matter, and without that no amount of marketing is going to help.”
Washington state also suffered. The number of passenger vehicles crossing from Canada was down 24%, and Spokane reported a 33% drop in visitors. The Clipper Navigation ferry service between Vancouver Island and Seattle saw ridership fall by 30%, forcing the company to lay off a quarter of its workforce. In New York’s northern region, 83% of businesses reported a drop in Canadian customers, and 35% had to cut staff. The North Country Chamber of Commerce found that 70% of businesses blamed the political climate and tariff policies for the drastic decrease.
Some business owners worry the downturn could become permanent. Christa Bowdish of the Old Stagecoach Inn in Vermont was forced to lay off employees and reduce hours. She told the committee, “It’s not just the tariffs. This is long-lasting damage to a relationship and emotional damage takes time to heal.”
This economic pain comes against the backdrop of a dramatic shift in U.S. foreign policy. As reported by The Globe and Mail, the latest United States National Security Strategy, released last week, reflects a vision deeply shaped by the MAGA movement and the worldview of President Trump and his allies. The strategy omits mention of “human rights,” instead emphasizing “God-given natural rights,” and singles out transnational organizations—particularly European ones—as cultural threats. The document signals a retreat from traditional alliances like NATO, and a turn toward a more isolationist, culturally conservative approach.
Vice-President JD Vance’s speech in Munich last February, which startled European leaders with its anti-woke and Moscow-sympathetic tone, was in step with this new direction. The strategy document even warns of “civilizational erasure” in Europe due to mass migration, suggesting that some NATO members could, within decades, become majority non-European. Canada, once a key ally, receives only a passing mention in the document, as a country urged to help the U.S. counter China’s subsidized goods. The broader message is clear: America is prioritizing its own interests, often at the expense of long-standing partnerships.
For border communities, the consequences of these policy shifts are immediate and personal. The drop in Canadian tourism, once a reliable economic engine, is not just a statistic—it’s lost jobs, shuttered businesses, and a growing sense of uncertainty about the future. As Diane Medler put it, without signals from both governments that cross-border friendships matter, “no amount of marketing is going to help.”
As winter deepens along the border, so too does the chill in Canada-U.S. relations. The numbers, the stories, and the new national strategy all point to a hard truth: when politics disrupts the ties that bind, it’s the families, workers, and small business owners who pay the price.
