Business & Finance
US-Canada trade tensions lead to drop in Canadian visitor spending across US states
Projections show 14 states and Washington, D.C., facing above-average losses per resident following tariff threats and declining travel.
The short version
- Escalating trade tensions and tariff threats between the U.S. and Canada have coincided with a notable decline in Canadian leisure travel to the United States.
- Data from Statistics Canada indicates Canadian land arrivals dropped by 33.9%, leaving travel numbers below 2024 levels.
- A Tourism Economics analysis projected that 14 U.S. states and Washington, D.C., face per capita losses exceeding the national average of $11 per resident, with Alaska facing the highest potential impact at $114 per resident.
Key facts
- The U.S. administration imposed 50% tariffs on Canadian items including alcohol and hockey equipment, while threatening additional 50% tariffs on steel, trucks, and auto parts.[Business Insider]
- Canadian Prime Minister Mark Carney stated that Canada would retaliate with dollar-for-dollar matching tariffs against the U.S.[Business Insider]
- Statistics Canada reported a 33.9% drop in Canadian land arrivals to the U.S. following 2025, with overall Canadian visitor counts remaining below 2024 levels.[Business Insider]
- Tourism Economics estimated that 14 U.S. states and Washington, D.C., faced 2025 Canadian spending losses per resident higher than the $11 national average.[Business Insider]
- Alaska had the highest projected loss in Canadian visitor spending per resident at $114, followed by Nevada at $77, Washington, D.C., at $61, Hawaii at $45, and Vermont at $37.[Business Insider]
What remains uncertain
- The per capita financial impacts projected by Tourism Economics rely on 2025 forecasts rather than finalized spending figures.[Business Insider]
Sources
- Canadian tourists are avoiding the US. These 15 states could feel the loss the most.Business Insider metered