Following Donald Trump’s imposition of a 25 percent tariff on goods imported from Canada, Canadian travellers are reportedly cancelling their trips to major US destinations in protest.

This boycott is poised to have a significant negative impact on the US tourism sector, which is a vital part of the national economy.

According to the US Travel Association (USTA), the imposition of steep tariffs could lead to turmoil for the US economy, especially as cancellations increase after the announcement.

Canada Takes a Stand

Canadian Prime Minister Justin Trudeau recently spoke to both American and Canadian citizens about the tariffs. He noted that these tariffs would adversely affect both economies, urging Canadians to consider local staycations instead of traveling across the border.
Trudeau stated: “Now is the time to choose Canada…It 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.”

Since the tariff’s announcement, many Canadian travel agencies have reported a rise in cancellations.

The Potential Impact on US Tourism

The ramifications for the US tourism industry could be dire.
Most foreign tourists arriving in the US come from Canada, with state tourism authorities in Florida and Texas expressing their concerns about potential permanent travel halts from Canadians, which could lead to billion-dollar losses for state and federal governments.

In the last year, the US welcomed 20.4 million Canadians, contributing approximately $20.5 billion to the economy.
Furthermore, the cancellations driven by tariffs may trigger a manpower crisis in the US tourism and hospitality sector, risking layoffs if not managed effectively.
USTA researchers have warned that even a 10 percent reduction in Canadian inbound travel could result in $2.1 billion in losses and lead to layoffs of about 140,000 jobs across the travel, tourism, and hospitality industries.