Tourists from Canada are refraining from traveling to New York due to escalating tensions with the Trump administration

In the heart of summer, New York's tourism industry is facing an unexpected challenge. The usually bustling month of July saw a nearly 500,000 decrease in travelers, a significant dip that is causing concern among industry professionals.

The decline in Canadian tourists, who account for 35% to 40% of tourism revenue in Western New York, is particularly noticeable. The US Senate Majority Leader, Chuck Schumer, has decried the impact of President Trump's trade war on New York's tourism industry, stating that Trump's tariffs have led to higher costs and fewer tourists in Upstate NY.

The misgivings between the U.S. and Canada may stem less from wounded pride and more from economic harm. A Pew Research Center survey found that only 34% of Canadians have a favorable opinion of the U.S., and 59% view the U.S. as the country’s largest threat. The exchange rate between Canada and the U.S. is now $1 = $1.38 Canadian, making vacations in the U.S. more expensive for Canadians.

Moreover, many Canadians are choosing to vacation in other parts of Canada instead of New York due to the tariffs and exchange rate. This is evident in the children's museum, Explore & More, in Western New York, which has seen a 97% decrease in Canadian visitors.

Border crossings from Canada to the U.S. have fallen by 22% since the trade war began, a trend that is affecting regions like the North Country and Western New York, which are feeling a very targeted pain due to their proximity to the Canadian border.

The economic harm to New York's tourism industry comes at a time when the state's tourism industry is otherwise nearing a return to pre-pandemic levels. The state is doing slightly better than the country as a whole, with hotel occupancy dropping by 1% and the average daily rate remaining flat. However, Western New York and New York City are expecting a 10% dip in Canadian visitors.

Billy Dorr, president of the New York State Hospitality & Tourism Association, suggests that the state's growth in tourism is largely coming from domestic tourists, as more Canadians are staying away. This shift in tourist demographics could have long-term implications for the state's tourism industry.

The trade war between the U.S. and Canada is causing economic hardship not only in the tourism sector but also for farmers and manufacturers, who are experiencing significant increases in the cost of raw materials due to new import tariffs.

The history of US-Canada relations is not without its fires. During the War of 1812, American forces razed the Canadian town of Niagara-on-the-Lake. Today, it seems, the fires of trade war are burning just as fiercely, leaving both nations to grapple with their economic consequences.

Tourists from Canada are refraining from traveling to New York due to escalating tensions with the Trump administration