Travel and spend by Canadians to the US could slump due to the threat of deep tariffs being imposed by president Donald Trump.
The imposition of 25% tariffs on imported Canadian and Mexican goods was given a 30 day reprieve less than 24 hours before they were due to take effect after last-ditch talks.
The newly-elected US president relented after both neighbouring countries agreed to stricter border security to tackle illegal immigration and take tougher steps to crack down on drug trafficking.
But it remains unclear whether Trump will follow through on his threats to Canada and Mexico once the 30-day deadline is reached.
Industry body the US Travel Association warned that a 10% reduction in Canadian travel could mean two million fewer visits, $2.1 billion in lost spending and 14,000 job losses.
Canada is the top source of international visitors to the US, with 20.4 million visits in 2024, generating $20.5 billion in spending and supporting 140,000 American jobs.
The top five most visited states by Canadians – Florida, California, Nevada, New York and Texas – could see declines in retail and hospitality revenue, as shopping is the top leisure activity for visitors from Canada, according to the association.
Canadian prime minister Justin Trudeau urged citizens to spend domestically in the face of the Trump tariffs threat, saying: “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.”
Trump is still going ahead with a 10% tariff hike on goods from China, triggering retaliation.