Today : Nov 01, 2025
Economy
29 October 2025

Trump’s Tariff Spat With Canada Hits New York Hard

A sudden breakdown in US-Canada trade talks sparks economic turmoil, job fears, and falling tourism as leaders and citizens on both sides of the border grapple with the fallout.

President Donald Trump’s abrupt decision on October 24, 2025, to walk away from trade talks with Canada has sent shockwaves across both sides of the border, triggering economic anxieties, political outcries, and even unexpected baseball travel stories. The fallout from the escalating trade dispute is already visible in New York, Ontario, and the heartlands of the U.S., threatening to upend livelihoods and reshape the long-standing partnership between two of the world’s closest neighbors.

The spark for this latest escalation was, surprisingly, a television ad. During the first two games of the World Series between the Toronto Blue Jays and the Los Angeles Dodgers, Ontario Premier Doug Ford aired a spot that praised Ronald Reagan’s free-trade stance and criticized the Trump administration’s tariffs. The ad, which aired on October 24 and 25, did not sit well with President Trump. According to Hudson Valley Post and The Christian Science Monitor, Trump angrily demanded the ad be pulled, calling it a “FRAUD” on social media and ordering the end of trade negotiations with Ottawa. He also threatened to hike tariffs on Canadian goods by 10%.

New York Governor Kathy Hochul wasted no time in condemning the move. In a statement issued October 29, she called Trump’s decision “impulsive and costly,” warning that it would drive up prices and threaten jobs across the state. “President Trump’s decision to walk away from trade talks with Canada is an impulsive and costly mistake that New Yorkers will pay for through higher prices and lost opportunities,” Hochul told Hudson Valley Post. She stressed the importance of the cross-border relationship, noting, “Canada is our top trading partner. Thousands of New York businesses, farmers, and border communities depend on that relationship. Tourism from Canada powers our economy from Niagara Falls to Montauk Point.”

Indeed, the numbers are stark. State data shows Canada buys billions of dollars in New York-made goods every year, everything from dairy and apples to manufactured parts. Border communities like Buffalo, Plattsburgh, and the North Country rely heavily on Canadian tourism, which pours millions into local economies. Hochul warned that risking this vital relationship “because of a personal grudge” was “petty, shortsighted, and harmful,” adding, “New Yorkers deserve better than personal grudges that drive up costs and risk our livelihoods.”

The consequences of the trade spat are rippling out far beyond New York. According to The Christian Science Monitor, Prime Minister Mark Carney told Canadians to brace for a new era in his October 29 address: “The four-decade era of ever-closer integration with the United States was over.” Carney’s message was clear—Canada must now seek new trading partners, and both countries should prepare for slower growth and job losses. The trade war has already caused job losses and plant closures in Canada, with industrial Ontario hit particularly hard. When Stellantis announced it would move a major plant from Ontario to Illinois, resulting in 3,000 lost jobs, Ottawa responded with new limits on tariff-free car imports from Stellantis and General Motors.

While the effects on Canada are immediate and visible, the impact on the United States, though less obvious, is no less significant. Tariffs on Canadian metals and lumber have quietly raised costs for American consumers. The Tax Foundation reported that tariffs would cost the average American household $1,300 in 2025, rising to $2,000 in 2026—amounting to the largest tax increase as a share of the economy since 1993. Certain states, especially those bordering Canada, are feeling the pinch. Michigan, for example, sent over a third of its exports to Canada in 2024, and now faces higher prices for car parts and a shrinking labor force. Ohio, another major exporter to Canada, is grappling with uncertainty around trade, inflation, and workforce stability.

The USMCA trade agreement, which shields most Canadian goods from U.S. tariffs, is set for review in 2026. Experts like Ryan Donally, head of the Windsor Essex Chamber of Commerce, warn that any weakening of USMCA could be disastrous for regions like Southwestern Ontario, where “upwards of 80 to 90% of our exports from Windsor-Essex go to the U.S.” Drew Dilkens, Windsor’s mayor, pointed out that “a tariff on Canada is 100% a direct tax to U.S. consumers,” especially when it comes to critical goods like softwood lumber.

The trade war’s impact isn’t limited to goods and manufacturing. Tourism has taken a direct hit. Canadians have historically been the largest group of foreign visitors to the United States, making 20.2 million trips in 2024 and spending $20.5 billion. But in 2025, travel industry data cited by CNN shows that Canadian travel to the U.S. is expected to drop by 22%, down to 15.7 million visits. A 10% reduction in Canadian tourism alone could mean 14,000 lost American jobs. The number of Canadians returning from the U.S. by car in August 2025 fell 34% from the previous year, according to Statistics Canada.

Yet, even amid the boycott, baseball proved a powerful lure. The World Series in Los Angeles drew thousands of Canadian fans, many of whom had previously joined the travel boycott but couldn’t resist supporting their Toronto Blue Jays. Vancouver resident Grant Murray, who had skipped regular U.S. trips all year, ended his boycott to attend the games with his brother from Australia. “The Canadian economy is being hurt. Lots of people are very concerned about their future,” Murray told CNN. “There’s a level of solidarity that I support, but I guess I’m now a hypocrite because I’m supporting the Blue Jays more than the boycott.”

Ticket data from resale services like StubHub and SeatGeek showed that 3% to 8% of World Series tickets in Los Angeles were purchased by Canadians. Many fans, like Jat Yassine of Toronto, found tickets in LA more affordable than in Toronto—least expensive seats were around $300 in LA versus $400 in Toronto, though average prices soared to nearly $1,400 in both stadiums. Some fans, like Shimon Sitzer, noted that their attendance was about supporting the Jays, not the U.S. or its president. “There’s actually some people I know would have maybe come if not for the situation with (President Donald) Trump,” Sitzer said. “But I met people at the game (from Canada) who said ‘We’re not here to support the United States or its president, we’re here to support our baseball team.’”

As political leaders on both sides dig in, the economic and personal costs of the trade war continue to mount. From higher grocery bills in New York to lost jobs in Ontario, from shrinking tourism to divided baseball loyalties, the effects are both widespread and deeply personal. Many, like University of Calgary economist Trevor Tombe, hope that “the two countries can converge on something that returns confidence to the business environment in both countries, so that we can get on with making sensible business decisions like we did before.” For now, though, North America’s closest partnership faces a test unlike any in recent memory.