Saturday, July 26, 2025

The tourism sector in New York State is hurting as the number of Canadian visitors at the border dipped more than 21% in just June 2025 alone when compared to the same period of time in 2014. This slump, being largely caused by newly added tariffs to products made in Canada, is being felt not just in tourism, but also trade and jobs – most notably in upstate New York. At the heart of the matter are the Canadian government’s retaliatory tariffs and U.S. President Donald Trump’s trade policies, with local officials urging an end to the dispute before further harm is done to the economy.

Canada is one of New York’s largest trading and tourism partners, and millions of Canadian tourists visit New York annually. At its heart, the tariff clash is more than just a question of trade policy; its real-world effects reach into communities that are dependent on cross-border tourism for jobs and economic underpinnings. New York officials are also mounting efforts to reverse the impact of the tariff-driven slowdown and to stimulate tourism from Canada as the summer tourism season gets underway.

Tariffs and New York’s economy

The lack of border crossings into New York State from Canada has been steep, as the Peace Bridge, the Rainbow Bridge, and Whirlpool Rapids Bridge saw the greatest drops in automobile crossings. There was a 376,000 drop in the number of visitors, according to U.S. Customs and Border Protection, from June 2024 through June 2025. This deceleration of U.S. traffic is attributable directly to the 35% tariff on Canadian goods that President Trump warned of implementing from August 2025.

In some ways, the tariffs have caused direct economic pain, with businesses at both ends of the border feeling the hurt. The tourism industry, which is crucial to New York’s economy, has also been devastated. “These tariffs don’t just hit families in the pocketbook—they hurt the economy for Main Street businesses that need trade to survive,” said Senate Minority Leader Chuck Schumer (D-N.Y.). “Instead of as many Canadian visitors, these stores and shops are seeing fewer and fewer tourists walking into their stores: quieter Main Streets and quieter stores in important tourist areas. Schumer has been a strong voice in urging that the tariffs be lifted, contending that the trade war with Canada is hitting upstate New York the hardest, and that places that benefit from tourism are taking a hit now.

Gov. Kathy Hochul has also expressed concern about the impact of the tariffs on rural health care, local farming, and other sectors that rely on goods and tourists from Canada. Hochul recently kicked off a tourism-based campaign designed to lure Canadian visitors back to New York, which boasts several iconic locations, including the Niagara Falls and the Adirondack Mountains, as well as bustling cities such as New York City.

Cross-border Tourism: Key to the Economics of This Pair of Cities

New York State has much to gain from tourism, particularly international travelers from Canada. In 2024, there were more than 1,300 Canadian-owned businesses providing jobs to thousands of New Yorkers and contributing substantially to the state’s economy. According to government statistics, New York exports over $17 billion in goods to Canada each year, while importing more than $20 billion. The Champlain Hudson Power Express, which will import clean Canadian hydroelectricity to power New York City, is a perfect example of the incredible economic partnership between the two regions. This project doesn’t just provide clean energy, it provides jobs and billions of dollars of economic benefits to New York over the next few decades.

Despite the current difficulties, New York is a popular choice for Canadian tourists. Over time, Canadian travelers have made a significant contribution to the state’s economy, spending more and staying longer than domestic tourists. And they bring spending power: International visitors — especially those from Canada — spend substantially more than domestic travelers and often extend their stays, making them an important part of the state’s tourism economy, a spokeswoman for Empire State Development’s Division of Tourism said.

Senate and Local Government Action for Resolution of the Tariff Issue

The tariffs, which have wreaked havoc with the U.S. economy, have spurred a bipartisan resolution in the Senate for the removal of the tariffs on Canadian goods. Schumer and other officials are urging New York’s House Republicans to move quickly to pass the resolution. The objective is to re-establish the connection between New York and Canada — one that has long been crucial to both travel and commerce.

Senior Republican officials, including Representative Elise Stefanik of New York, who represents the North Country, have also voiced concerns about the tariffs and what they mean for local businesses and national security issues that are connected to the border. Stefanik also acknowledged both the need to secure the border but also the economic importance of trade and tourism with Canada, and has been striving to find the right balance between the two.

A Ray of Hope: New York’s Bid to Revive Tourism Across the Border

Whatever the damage from tariffs, there is a can-do spirit among New York’s political leaders. Governor Hochul’s summer tourism campaign to bring Canadians back to the state to visit across New York cities and landscapes, the cultural and recreational experiences await visitors. The state’s trove — which includes world-class museums and vibrant cities just a day’s drive from home, along with bucolic countryside retreats and historic sites — still holds the same appeal, and the hope is to remind Canadian travelers of what they still have to look forward to in the Empire State.

As New York grapples with the tariff spat, the local tourism sector clings to hope for a recovery. The state has an extended history and close relation with its northern neighbors that largely help efforts to tap the Canadian tourist market. With a tariff resolution approaching, the tourism industry can start to recover, returning visitors and dollars to both New York and Canada.

Conclusion: A Future Linked by Shared Goals in New York and Canada

The trade war disrupters are taking a toll on New York tourism and commerce, but the state and its Canadian neighbors are proving to be a resilient lot with better days, hopefully, ahead on both sides of the lake. And although efforts are underway to lift the tariffs, while tourism has long boomed in both regions, the two places are unquestionably linked, and New York is due for a major comeback. The cultural and economic connection that is shared between New York and Canada makes us natural trade and tourism partners. With ongoing cooperation, there is a bright future for both of us.

(Source: U.S. Customs and Border Protection, New York State Government, Senate Minority Leader Chuck Schumer)