by Lacey Pfalz
Last updated: 2:05 PM ET, Mon February 3, 2025
The US Travel Association warned that the Trump Administration’s tariffs on Canada could impact Canadian visitation to and spending within the United States, with even a 10 percent reduction in Canadian travel leading to a loss of 14,000 American jobs and $2.1 billion less in spending.
On February 1, President Trump signed an executive order pronouncing 25 percent tariffs on the majority of goods from Canada, with oil, gas and electricity taxed at a 10 percent rate.
In response, Canadian Prime Minister Justin Trudeau matched the 25 percent tariffs on American goods, which include Wisconsin dairy products, Florida oranges and Kentucky bourbon.
Trudeau also urged Canadians to travel and spend their dollars domestically, in act boycotting Americans goods, services and destinations: “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.”
Canada is a huge international source market for the United States travel industry, with its 20.4 million visitors generating $20.5 billion in spending in 2024 and supporting 14,000 American jobs. Canadians typically visit Florida, California, Nevada, New York and Texas, and it’s these destinations that would see the biggest declines in revenue should Canadians take part in Trudeau’s boycott of American destinations.
The Trump trade war has begun, and the American travel and tourism industry will not be left unaffected.
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