Following Donald Trump’s imposition of a 25 percent tariff on goods imported from Canada, travellers from the US’ northern neighbour are cancelling trips to key American destinations in protest.

This boycott will have a significantly adverse effect on the US tourism sector, one of the most notable contributors to the national economy.

According to the US Travel Association (USTA), the imposition of steep tariffs stands to lead to disaster for the US economy, especially in light of a wave of inbound trip cancellations following the President’s announcement.

Canada puts its foot down

Canadian Prime Minister Justin Trudeau recently addressed both Americans and Canadian citizens on Saturday just as the tariffs were announced.

He remarked that these would have dire implications for the economies of both nations, and advised Canadians to opt for in-country staycations rather than booking holidays across the border.  

Trudeau said: “Now is the time to choose Canada…It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites, and tourist destinations our great country has to offer.”

Since the imposition of the tariff, Canadian travel agencies found themselves inundated with a slew of cancellations.

How bad can it get for the US tourism economy?

The simple answer is that it can be very bad.

The state tourism authorities in Florida and Texas, the majority of foreign tourists making their way into the US mainland are Canadians.

They have expressed fears of Canadians permanently calling a halt to any trips to the US, and this would lead to losses amounting to billions of dollars for both state and federal governments.

The US National Travel and Tourism Office pointed out that the country saw 20.4 million Canadians in the past year, generating up to US$20.5 billion in total revenues.

At the same time, tariff-driven cancellations will lead to a manpower crisis throughout the United States’ tourism and hospitality industry, as the massive drop in revenue will lead to layoffs if not addressed properly.

Researchers at the USTA warn that even a ten percent reduction in inbound travel from Canada could lead to up to US$2.1 billion in losses and lay off up to 140,000 jobs through the travel, tourism, and hospitality sectors.