Travel / news
Trade War Escalation Threatens U.S. Travel Rebound as Canadian Arrivals Just Turned a Corner
Canadian travel to the U.S. had only just posted its fourth straight month of year-over-year gains when tariff disputes flared, clouding the outlook for hotels and destinations.
The White House imposed 50% tariffs on Canadian goods, drawing retaliation from Ottawa on roughly $20 billion worth of products. Prime Minister Mark Carney said, “You’re at war when you’re attacked, and we got attacked.”
Tensions escalated further Thursday when President Donald Trump signed an executive order directing the Interior Department to rename Lake Ontario as “Lake America.”
The dispute arrives just as Canadian travel to the U.S. was showing signs of recovery. A July survey from Longwoods International found that 28% of Canadian travelers had visited the U.S. within the previous six months, up from 23% a year earlier.
Longwoods President and CEO Amir Eylon said Canadian travel intent has been improving “albeit slowly” after previous comments by Trump about making Canada the 51st state.
The renewed rift poses a risk to U.S. inbound travel recovery, a worry for hotel operators and destinations that depend on Canadian visitors.