US faces economic warning as tourism declines due to Canadian boycott
A threatened ‘trade war’ between the United States and Canada is momentarily on hold after Canadian Prime Minister Justin Trudeau agreed to reinforce his country’s border patrol.
Trudeau’s take on Trump’s tariff
US President Donald Trump finally agreed to hold off introducing 25% tariffs on Canadian (and Mexican) goods for 30 days, putting a temporary hold on a potentially damaging trade war.
However, the bad blood generated between both nations may have a long-lasting knock-on effect with Trudeau initially appealing to Canadian citizens to reconsider travelling to the US and travel domestically.
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Travel ties between US, Canada and Mexico
Both Mexico and Canada have strong travel ties with their neighbour and in 2023 alone, over 20 million Canadian visitors travelled Stateside with this volume contributing significantly to the US tourism industry and in turn boosting local economies.
The latest data from the US Travel Association suggests that Canadian visitors alone spent an estimated $20.5 billion and the body will be hoping that both Trump and Trudeau can thrash out an agreement that sees any threat of future tariffs halted.
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The association warned that the tariffs would lead to an economic tourism disaster with thousands of Canadians canceling their trips, as witnessed first hand by travel agencies north of the border, immediately after Trump’s announcement.
Flight Centre, the country’s largest agency, said it had witnessed “a surge of customers” canceling their trips south, and chose instead to visit a different country.
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