According to a recently released report, the tourism industry is about to take a hit as travel from Canada to the United States is projected to experience a significant drop, thanks to President Donald Trump’s tariffs and other policies.
Tourism Economics has estimated that Canadian tourism to the United States will experience a 15% drop resulting from cost increases triggered by Trump and that travel from other key nations will also decline, with total international travel down 5%.
“Some organizations will feel pressure to avoid hosting events in the US, or sending employees to the US, cutting into business travel. Anecdotal evidence from Tourism Economics clients confirms a growing number of travel cancellations from Canada,” Tourism Economics notes.
The Canadian government has made clear that increased U.S. tariffs will lead to increased Canadian tariffs, despite Trump’s repeated assertions that other nations will acquiesce to his trade war.
The trade war is expected to raise costs for consumers, but Republican officials have stood behind Trump’s haphazard application of trade policy—which has rocked financial markets for weeks.
People participate in a rally against President Donald Trump's threats to Canadian sovereignty.
Meanwhile, Trump has worsened the hostile situation with Canada by repeatedly arguing that Canada should become the 51st state. Canada—which has historically been one of the United States’ closest allies, both geographically and ideologically—has rebelled against Trump’s threats.
Because of Trump, the international image of the United States has quickly shifted to that of a pariah.
Multiple countries have issued advisories warning against travel to the United States, with concerns including hostility toward the LGBTQ+ community, harsh detention and deportation policies affecting immigrants and native-born Americans, and attempts to curtail free speech.
Foreign institutions have started offering “scientific asylum” for U.S. talent, providing a more open academic environment that once was a hallmark of American exceptionalism. The administration’s hostility toward science and dissent is leading to “brain drain,” with academics choosing to leave the United States to pursue opportunities with more freedom.
Trump’s actions are making basic goods more expensive for consumers both domestically and internationally, while people from other countries are avoiding travel to the United States for risk of mistreatment by the Trump administration.
The result? A hit to U.S. esteem and a quantifiable loss for businesses.
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