On March 4, 2025, U.S. President Trump officially enacted 25 percent tariffs on CA$30 billion (US$20.6 billion) of American exports, which would expand to CA$155 billion (US$106 billion) after three weeks. Whilst these tariffs are primarily impacting imports and exports, the tourism sector is another important, often neglected, component of the Canadian economy, particularly in close proximity to the U.S. border.
Niagara Falls is one of the most famous landmarks in North America, with its location centred on the New York-Ontario border. About 75 percent of Niagara Falls visitors are Canadian, and 25 percent American. There is a rising motive among Canadians to boycott spending in the U.S. and on American goods, from avoiding groceries produced in the U.S. and limiting travel to rebranding Americano coffees to “Canadiano.” With the devaluation of the Canadian-U.S. dollar exchange rate, coupled with national movements of Canadians to boycott spending in America, Niagara Falls, Canada anticipates a reduction of domestic tourists in accordance with the ongoing boycott movement. In fact, U.S. hotels near the border have seen a drastic decrease in reservations over the past couple of weeks, including Bellingham in Washington State, in addition to the Niagara Falls region.
On the American side of the situation, Canadian tourists are an integral component of the tourism sector, the largest group of foreign visitors. In 2024 alone, Canadian tourist spending accounted for $20.5 billion (U.S.). Perhaps Trump is so focused on diminishing the other North American countries’ economies, that he lost sight of this fact. It is not just border cities that are losing revenue from Canadian spending. In addition to New York, Florida, California, Nevada, and Texas are the top destinations for Canadian visitors, due to their world-famous cities like San Francisco, Orlando, Las Vegas, and many more.
Although Americans are benefitting from the devaluation of the Canadian dollar, making the U.S. dollar stronger internationally, it is unclear if Canada will see the same “boycotting” movement that U.S. tourism is currently experiencing. For instance, the Maritime provinces are heavily dependent on seasonal tourism as some of the poorest provinces in terms of gross domestic product (GDP). Areas like the Hopewell Rocks, the Cabot Trail, and PEI often have just as many American tourists as Canadians, if not more. To combat the potential of American tourism plummeting in Canadian provinces that need it most, promotion of domestic travel is important for Canadians to explore the natural wonders of their own home country. Although domestic tourism effects are uncertain, one thing is clear, Trump’s tariffs are an opportunity for local Canadian tourism to shine. Rather than Canadians spending $20.5 million (U.S.) on U.S. trips, imagine how the local economy could benefit if that travel was domestic.
There is hope however, with Montreal seeing an all-time high of accommodation bookings, already in early March. This is due to the combined effects of American tourists more easily swayed to take a Canadian vacation with their improved exchange rate, as well as Canadian travellers who have likely canceled plans to the U.S., instead searching for a domestic summer vacation.
