Canadian Tourism Decline Hurts U.S. Border Businesses
From Washington state to northern New England, American businesses that have long depended on Canadian visitors are seeing traffic dry up – and with it, a crucial source of revenue.
A new report shared exclusively with Fortune by the Joint Economic Committee (JEC) – Minority,a congressional standing committee established in 1946,details how a sharp drop in Canadian tourism is impacting every U.S. state along the northern border. This comes as President Trump has proposed annexing Canada, imposed tariffs on Canadian goods, and repeatedly paused trade talks with Ottawa, creating a colder relationship and affecting cross-border travel and spending.
From January to October 2025,passenger vehicle crossings at the U.S.-Canada border fell almost 20% compared to the same period in 2024, according to JEC analysis of U.S.customs and Border Protection data. Some border states experienced a 27% decline, which local tourism agencies say translates to fewer tourists, more empty hotel rooms, and lower sales.
“For generations, Canadians have visited New Hampshire and other states along the U.S.-Canada border to see family and friends, stay in our hotels, eat at our restaurants, and shop in our stores,” said U.S. Senator Maggie Hassan (D-NH), Ranking Member of the Joint Economic Committee.”But following President Trump’s tariffs and actions,fewer Canadians are traveling to the United States,threatening American businesses and the strong relationship between our two countries.”
Canadians have consistently been key international visitors to the U.S., both in numbers and spending power.They often represent the largest single group of international tourists for manny border states. the decline isn’t just a statistical issue; it’s a real problem for businesses that rely on Canadian customers.
the JEC report highlights that the impact isn’t uniform. States heavily reliant on cross-border shopping, like those in the upper Midwest and New England, are feeling the pinch more acutely. businesses offering experiences – like outdoor recreation or cultural attractions – are also seeing a slowdown.
The report urges a return to more stable and predictable trade relations with Canada. It argues that restoring trust and reducing trade barriers are essential to revive tourism and support the economic well-being of border communities. Simply put, a good relationship with Canada is good for american business.
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