Federal tariffs contributed to New York having one of the steepest drops in the nation in international tourism in 2025, as well as a decline of $3.8 billion in exports to Canada, according to an analysis released Thursday by state Comptroller Tom DiNapoli.
The report found that overseas travelers fell 3%, a loss of 176,000 visitors. The impact was most acute for areas near the Canadian border, where travel from Canada fell by more than 21%, a decrease of nearly 3.6 million visitors.
That decline impacted the state’s economy with fewer visitors spending money on hotels and restaurants. International travelers spent nearly $17 billion in New York in 2024, according to the U.S. Bureau of Economic Analysis. However, tourism-related Gross Domestic Product (GDP) was flat in 2025, hotel occupancy fell 1.2%, and employment trends were uneven — down 2.6% in the North Country and 2% in Western New York, but up 1% in New York City.
According to the comptroller, in 2024, there were over 932,400 private sector jobs in New York in industries associated with international travel, paying over $45.4 billion in wages. Nearly three-quarters of the employment was in accommodation and food services. Through September 2025, average employment in these industries increased by 1,782 jobs over the same period in 2024, compared to private sector job growth of 1% in all other industries in the state.
In addition, as a result of new tariff policies implemented under the Trump administration in 2025, exports declined to almost half of New York’s trading partners, the report found. Among the highest declines were in exports to Canada, where exports of more than two-thirds of product categories from New York declined.
“Federal policies are driving foreign travelers away and taking billions in tourism spending and harming our economy as exports substantially decline,” DiNapoli said in a statement. “That loss of revenue means fewer jobs in New York and tougher times for those working in the tourism industry. We’re already seeing the consequences, especially in hotels and restaurants in those regions near the Canadian border. New York is a top destination for tourists to the U.S., and policies that welcome and encourage international travel are needed to avoid damaging economic consequences.”