The ongoing economic tensions stemming from U.S. tariffs and President Donald Trump’s provocative comments have drastically impacted Canadian tourism to the United States, leading to substantial losses for businesses on both sides of the border.
As of mid-March 2025, tour operators from Canada are reporting a staggering drop of up to 85% in bookings for trips to the U.S. Thanks to Trump's continued push for aggressive tariffs and an unsettling declaration to make Canada the "51st state", travel agencies and related industries are feeling the pinch. Catherine Prather, President of the National Tour Association, remarked, "To use some of the words I hear from tour company members of the National Tour Association, the drop-off is ‘astronomical’ when speaking about Canadians booking group travel to the United States," highlighting the business impact.
The decrease in Canadian tourists is being echoed by operators like Matt Levy, who owns a New York City tour guide company called Spread Love Tours. Levy noted that his business with Canadian groups is on track to decrease by 50% this year. He stated, "When you piss off a country and threaten to annex them, they are not going to want to travel here," clearly expressing the sentiment that political tensions are causing rational travelers to reconsider their plans.
Meanwhile, another Canadian operator, Travac Tours based in Ottawa, reported it was forced to cancel every planned U.S. trip for March, April, and May of this year. The company had expected to send 16 coach buses to New York City, a destination rich with opportunities for leisure and cultural engagement.
Statistics Canada revealed that Canadian road trips to the U.S. were down 23% in February 2025 compared to the previous year, a trend that will likely have dire ramifications for local economies dependent on this influx of tourism. According to the U.S. Travel Association, a modest 10% decline in Canadian visitors to the U.S. could trigger over $2.1 billion in lost revenue and jeopardize around 14,000 jobs.
At the political level, U.S. Senator Peter Welch articulated his concerns during a recent gathering with business leaders from Vermont and Quebec. "I am appalled at what our President is saying about Canada in reference to a 51st state," Welch stated, expressing his horror over the proposed tariffs and their detrimental impact on American and Canadian relations. These remarks were echoed by Canadian MP Marie-Claude Bibeau, who stressed that the implications of Trump's rhetoric extend far beyond trade disputes and threaten Canada's sovereignty.
During the meeting, various business representatives articulated how the tariff situation is squarely affecting their bottom lines. Bob Montgomery, a representative for a Vermont-based brewery, explained that the drop in Canadian visitors has reduced revenue just as tariff increases have led to higher costs for essential items like aluminum cans. Montgomery’s brewery had previously celebrated ties with Canadian customers, hosting a special "Quebec Day" back in 2021 to mark the reopening of the border post-COVID.
On the other hand, Denis Larue, who runs an industrial snowblower manufacturing company in Quebec, warned that the tariffs could devastate his business model. "Can you imagine how much the price will increase?" he asked, referencing the frequent border-crossing components integral to his production processes. His worries highlight how intertwined the manufacturing sectors of the U.S. and Canada are, and the repercussions that tariffs could hold.
Outside the political arena, Canadian consumer sentiment has shifted as well. The "Buy Canadian" movement has surged, with a report from Bank CEO Per Bank indicating a 10% uptick in sales for domestic products as Canadians increasingly choose local alternatives over American goods.
In essence, the relationship between the U.S. and Canada is at a critical juncture. With escalating tariffs and bitter rhetoric complicating previously hearty trade relations, there is a pressing need for dialogue and comity. Commenting on the need for unity, business owner Mike Desmarais posed a critical question: "What’s going to happen … when we can’t sell the Canadian and the European products in the United States, we can’t sell our American products in Canada?" His remark encapsulates the very essence of the challenges facing both nations.
Recent developments signal that some U.S. states are beginning to push back against Trump's trade policies. Colorado Governor Jared Polis, for example, has initiated conversations highlighting the benefits of his state's longstanding relationship with Canada. Political leaders from both nations are increasingly recognizing that the path forward must be characterized by collaboration, rather than conflict.
As the dialogue continues, both Canadian and American leaders are calling for a return to better understanding and friendship. Bibeau remarked, "We still love you. We want to come, but it hurts really bad," reflecting the desire for resolution amidst substantial challenges. Unless productive measures are taken soon, the ramifications of this fallout could reshape cross-border relations indefinitely.
