Exclusive: U.S. businesses are grappling with a massive slump in tourism from Canada, leaving owners scrambling to survive—'I can barely count Canadian visitors on one hand' | Fortune
Imagine waking up to a once-bustling border town that's now eerily quiet, with empty hotel rooms and silent cash registers. That's the harsh reality for American entrepreneurs along the northern edge of the country, where Canadian tourists—who used to flock in droves—have vanished almost overnight. But here's where it gets controversial: could political decisions from the top, like tariffs and strained talks, be sabotaging not just trade, but cherished neighborly bonds? Stick around to uncover the full story and see why this isn't just an economic hiccup—it's a wake-up call for international relations.
From the lush landscapes of Washington state to the picturesque villages of northern New England, U.S. enterprises that once thrived on visitors from the Great White North are now watching their customer base evaporate, taking vital income streams right along with it. A fresh report, exclusively shared with Fortune by the Joint Economic Committee (JEC) – Minority (a long-standing congressional panel established in 1946 to track America's economic health, accessible at https://www.jec.senate.gov/public/), reveals how a steep decline in Canadian travel is pounding every state bordering our northern neighbor. This isn't unrelated to recent political moves: President Trump's ideas about potentially absorbing Canada, his imposition of multiple tariff waves on Canadian imports, and his repeated walkouts from negotiations with Ottawa have fostered a frosty atmosphere that discourages cross-border journeys and expenditures.
Data from the JEC, sourced from U.S. Customs and Border Protection records, shows that between January and October 2025, entries of passenger vehicles across the U.S.-Canada frontier plummeted by nearly 20% when compared to the same timeframe in 2024. In certain border states, the drop soared to 27%, and local tourism experts are noticing the fallout in real-time—fewer sightseers, vacant hotel beds, and sluggish retail activity. To put this in perspective for newcomers to the topic, tariffs are essentially extra taxes on imported goods, which can raise prices and create uncertainty, making trips less appealing and more expensive.
U.S. Senator Maggie Hassan (D-NH), the Ranking Member of the Joint Economic Committee (profile at https://www.hassan.senate.gov/), summed it up poignantly: "For generations, Canadians have journeyed to New Hampshire and other states near the U.S.-Canada boundary to reunite with loved ones, enjoy our hospitality spots, dine at our eateries, and browse our shops. Yet, amid President Trump's impulsive tariffs and unnecessary escalations, fewer Canadians are venturing south, jeopardizing American livelihoods and weakening the strong connections between our two countries."
Historically, Canadians rank among the U.S.'s top international guests—not just in volume, but in how much they spend. Experts in tourism and economics point out that factors like higher costs, a depreciated Canadian dollar (which means their money buys less in the U.S.), and escalating political friction are steering many travelers toward stays within Canada or trips to other global hotspots instead (for more on this shift, check out https://www.cbc.ca/news/business/u-s-canadian-travel-loss-9.6974240). For communities right on the border, this change is hitting hard and fast.
Shirley Hughes, president and CEO of Visit Fargo-Moorhead (located at https://www.fargomoorhead.org/) in Fargo, North Dakota, and Moorhead, Minnesota, emphasized the human side: "These statistics aren't mere figures; they reflect lost earnings for local merchants, diminished demand for accommodations, and fewer funds to sustain employment and community growth."
In northern New Hampshire, where the border is just eight miles away, the scarcity of Canadian license plates is glaringly obvious. Elizabeth Guerin, proprietor of the Fiddleheads gift shop (visit https://www.fiddleheadsusa.com/) in Colebrook, New Hampshire, shared her personal struggle: "Typically, Canadians account for 15-25% of our foot traffic. Nowadays, I can probably tally the Canadian guests on a single hand. I'm just doing my best to keep afloat and stay above water."
And this is the part most people miss: the effects ripple far beyond shops and motels, impacting vineyards and tourist spots that depend on regular cross-border patrons. Scott Osborn, president and co-owner of Fox Run Vineyards (at https://foxrunvineyards.com/) in Penn Yan, New York, explained: "The reduction in Canadian tourist visits has noticeably affected our profits. With Canadians representing roughly 10% of our clientele, fewer border-crossers mean fewer wine tastings, guided tours, and bottle purchases—a domino effect that influences our whole setup, highlighting just how crucial international tourism is to our success."
Some business leaders fear the harm could linger even after any future improvements in U.S.-Canada trade ties, as Canadian visitors develop fresh routines in new destinations. Christa Bowdish, owner of the Old Stagecoach Inn in Waterbury, Vermont (details at https://oldstagecoach.com/), warned: "This inflicts enduring harm on a relationship, and emotional scars heal slowly. While folks skip Vermont, they're discovering alternative spots, creating new experiences, establishing fresh family rituals, and we might never reclaim all of that."
On the West Coast, event planners are also in the squeeze. Kevin Coleman, executive director of SeaFeast (at https://www.bellinghamseafeast.org/) in Bellingham, Washington, noted: "Starting in March this year, we've witnessed a sharp decline in Canadian attendance, coupled with reduced participation at our late-September festival. We realized post-March that we couldn't depend on our Canadian audience due to border anxieties and confusion over tariffs, plus Canada's push to prioritize domestic options."
For enterprises all along the northern frontier, the pressing query isn't merely when Canadians will flood back in significant numbers—but whether they'll ever fully recover the vanished patronage. And here's a controversial twist: while some argue that Trump's tough stance is protecting American jobs from unfair competition, others see it as self-inflicted economic damage that alienates a close ally. Is this a smart strategy for national security, or a costly blunder in diplomacy? What do you think—does economic nationalism trump neighborly goodwill, or should we prioritize open borders for mutual benefit? Share your views in the comments below; do you side with the tariffs, or is there a better way to balance trade and tourism?
For this piece, Fortune journalists employed generative AI as a research aid. An editor confirmed the facts prior to publication.
