The Canada-US tariff dispute threatens US tourism, with millions of Canadian visitors reconsidering their travel plans, impacting key states’ economies.

The latest trade tensions between the United States and Canada have sparked concerns about a potential decline in Canadian tourism, a key economic driver for many US states. Following the US administration’s announcement of tariffs on Canadian products, Canada’s leadership has encouraged its citizens to “choose Canada” for their vacations instead of traveling to the United States.

Canada’s Impact on US Tourism

Canada is the largest source of international visitors to the United States, accounting for 20.4 million trips in 2024 and contributing $20.5 billion in tourism spending, according to the US Travel Association. These visitors play a crucial role in supporting 140,000 American jobs, with significant economic benefits for states that rely heavily on Canadian tourists.

However, the newly imposed 25% tariffs on Canadian and Mexican imports, signed into effect on February 1, have caused uncertainty. The implementation was delayed for a month, but that timeline is set to expire next week. With tensions rising, Canadian travelers may opt for domestic destinations instead of visiting the US, a shift that could have widespread economic consequences.

States Most Affected by a Decline in Canadian Tourists

Some of the most visited US states by Canadians include:

• Florida
• California
• Nevada
• New York
• Texas

A decline in Canadian tourism could significantly impact hospitality, retail, and entertainment industries in these states, which depend on Canadian visitors for a substantial share of revenue.

Projected Impact on US Cities

In 2025, Boston was expected to set a new record for Canadian visitors, with 878,000 tourists projected to visit, contributing an estimated $660 million in tourism spending. However, with the current political climate and trade restrictions, it remains uncertain whether Canadian travelers will maintain their plans.

Air Canada Cuts Flights Amid Trade Dispute

Air Canada recently announced it would reduce capacity on routes to Florida, Las Vegas, and Arizona starting in March, citing uncertainty surrounding the Canada-US tariff conflict. While no immediate cuts to New England flights have been confirmed, travelers flying into major airports such as Rhode Island T.F. Green International Airport and Boston Logan International Airport may see reduced availability in the near future.

Regional Impact in Rhode Island

Rhode Island’s tourism industry primarily relies on visitors from Maine to Washington, D.C., due to its accessibility by car. While the region may not feel the immediate impact as strongly as states like Florida or California, any decline in Canadian travel could still affect local businesses, particularly in hospitality, retail, and entertainment sectors.

As tensions between the US and Canada escalate over trade policies, the tourism industry braces for potential losses. With millions of Canadian visitors reconsidering their US travel plans, states that depend on cross-border tourism could experience significant revenue declines.

Whether the situation will stabilize or worsen in the coming months remains uncertain, but businesses and tourism officials are closely monitoring the developments, hoping for a resolution that safeguards the economic benefits of Canadian tourism.

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