A U.S. businesses suffering from Canadian tourist decline report, released by Democrats on the Joint Economic Committee, points to the damaging effects of reduced Canadian tourism on businesses, particularly those in border communities. The decline in visitors is attributed mainly to the economic repercussions of President Donald Trump’s tariff policies.
Economic Impact on U.S. Border Communities
Communities along the U.S.-Canada border, particularly in New England and the Maritime provinces, have experienced significant economic strain due to fewer Canadian tourists. For instance, U.S. Customs and Border Protection reported nearly a 20% decrease in border crossings in Maine in 2025 compared to the previous year. Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce, stated, “Although Canadian tourists represent a small portion of overall visitors, their absence has a disproportionately large impact on local businesses.”
The U.S. businesses suffering from Canadian tourist decline report also highlights a significant dip in ferry traffic between Yarmouth, N.S., and Bar Harbor, Maine. The ferry operator noted a 20% drop in business this past summer, which local leaders, like Yarmouth Mayor Pam Mood, believe is tied to the tariffs imposed under President Trump’s administration.
Strained Relations and Economic Pressures
The strained relations between the U.S. and Canada have resulted in reduced tourism and cross-border interactions, impacting businesses that have long relied on Canadian visitors. Woodcock noted, “We’ve seen a reduction in visitors and the economic fallout of these tariffs, affecting both businesses and personal relationships.”
However, Mayor Mood shared that U.S. tourism in Yarmouth remains strong, despite the tariff-related downturn in Canadian visitors.
Canadian Tourism’s Contribution to the U.S. Economy
While U.S. businesses are suffering from the decline in Canadian tourism, Canadian tourists still represent an essential part of the U.S. economy. In 2024, Canadian tourism contributed $20.5 billion to the U.S. economy, supporting 140,000 jobs. This report underscores the need to address the decline in Canadian visits and work toward improving U.S.-Canada relations, especially in terms of trade and tourism.
