Exclusive: US Businesses Suffer as Canadian Tourism Plummets

The Impact of a Deteriorating U.S.-Canada Relationship on Border Businesses

From Washington State to northern New England, American businesses that have long relied on Canadian visitors are experiencing a significant decline in traffic and revenue. This downturn has been highlighted by a recent report from the Joint Economic Committee (JEC)–Minority, which outlines the effects of a sharp drop in Canadian tourism across all U.S. states along the northern border.

The report, shared exclusively with HAWXTECH.NET, reveals that from January to October 2025, the number of passenger vehicles crossing the U.S.-Canada border fell by nearly 20% compared to the same period in 2024. In some border states, the decline reached as high as 27%. Local tourism agencies have reported fewer tourists, increased hotel vacancies, and weaker sales as a result.

U.S. Sen. Maggie Hassan (D-N.H.), ranking member of the Joint Economic Committee, emphasized the historical significance of Canadian visitors to the U.S. "Going back for generations, Canadians have visited New Hampshire and many other states along the U.S.-Canada border to see family or friends, stay in our hotels, share a meal at our restaurants, and shop at our stores," she said. However, she noted that the actions of President Trump, including proposed annexation of Canada, tariffs on Canadian goods, and broken trade talks, have led to a decline in cross-border travel and spending.

Canadians have historically been among the most important international visitors to the U.S., both in numbers and spending. Analysts and tourism officials point to several factors contributing to this shift, including rising prices, a weaker Canadian dollar, and heightened political tensions. These factors have prompted many travelers to opt for domestic trips within Canada or alternative international destinations instead.

Shirley Hughes, president and CEO of Visit Fargo–Moorhead, highlighted the real-time impact on border communities. "These are more than numbers; they represent missed revenue for local businesses, reduced hotel demand, and fewer dollars supporting jobs and investment in our community."

In northern New Hampshire, the absence of Canadian license plates is particularly noticeable. Elizabeth Guerin, owner of the Fiddleheads gift shop in Colebrook, N.H., described the situation: "Being only eight miles from the border, normally Canadians make up anywhere from 15% to 25% of visitors. Now, I can probably count the number of Canadian visitors on one hand. I’m just trying to plug along and keep my nose above the waterline."

The impact extends beyond retail and lodging into wineries and attractions that depend on cross-border regulars. Scott Osborn, president and co-owner of Fox Run Vineyards in Penn Yan, N.Y., explained the consequences: "The drop in visits from Canadian tourists has had a noticeable impact on our bottom line. With Canadians making up about 10% of our business, fewer cross-border travelers mean fewer tastings, tours, and wine sales—a ripple effect that touches our entire operation, underscoring how important cross-border tourism is to our business model."

Some operators fear that the damage will outlast any eventual improvement in U.S.–Canada trade relations, as Canadian travelers form new habits elsewhere. Christa Bowdish, owner of the Old Stagecoach Inn in Waterbury, Vt., said, "This is long-lasting damage to a relationship, and emotional damage takes time to heal. While people aren’t visiting Vermont, they’ll be finding new places to visit, making new memories, building new family traditions, and we will not recapture all of that."

On the West Coast, festival organizers are also feeling the pinch. Kevin Coleman, executive director of SeaFeast in Bellingham, Wash., noted, "Since March of this year, we have not only seen Canadian traffic drop drastically, but we have also seen a drop in our number of attendees at our festival this year in late September. We knew that after March, we could not rely on our Canadian business because of fear at the border and lack of understanding of what is happening with tariffs and Canada drawing a strong line of promoting Canada first."

For businesses up and down the northern border, the question now is not just when Canadians will return in force, but how much of that lost business can ever be won back.