U.S. Congress Warns Trump as Canadian Tourism Plummets Amid Trade Tensions

OTTAWA — In a rare bipartisan acknowledgment from across the border, Democratic members of the U.S. Congress’s Joint Economic Committee have issued a stark warning to President Donald Trump: his aggressive tariff policies toward Canada are inflicting significant economic damage on American border states, with a sharp decline in Canadian visitors serving as a vivid indicator of the fallout.

The report, released last week, documents a nearly 20 percent drop in passenger vehicle crossings along the U.S.-Canada border from January to October 2025 compared with the same period in 2024. In states like Maine, crossings have fallen by as much as 25 percent, while New Hampshire has seen a 30 percent reduction in Canadian visitors. Businesses in these regions, long accustomed to the steady flow of northern neighbors for shopping, dining and recreation, are reporting empty hotel rooms, quieter restaurants and diminished sales.

Canadian tourism, the report notes, contributed $20.5 billion to the U.S. economy in 2024 and supported 140,000 American jobs. The abrupt reversal in 2025 has hit small towns hardest. In Maine, the CAT ferry service linking Bar Harbor to Yarmouth, Nova Scotia, experienced a 20 percent drop in passengers over the summer. Local officials, including Yarmouth’s mayor, have attributed much of the decline to political tensions and trade hostility emanating from Washington.

This economic backlash comes against the backdrop of an escalating trade dispute initiated by Mr. Trump early in his second term. In February 2025, the president imposed 25 percent tariffs on most Canadian imports, citing concerns over migration and fentanyl trafficking—justifications that many analysts have dismissed as pretextual. Canada responded with retaliatory measures, though Ottawa has since scaled back some countermeasures in hopes of resuming negotiations.

Yet the damage appears self-inflicted on the American side. Business owners in border communities have shared anecdotes of Canadian customers expressing reluctance to cross due to perceived hostility, longer border waits and fears of arbitrary enforcement. In New York’s Finger Lakes region, winery operators report fewer tastings and tours; in Montana, where Canadians once made up nearly 80 percent of international visitors, spending has plummeted.

Prime Minister Mark Carney, who assumed office in March 2025 following Justin Trudeau’s resignation, has framed Canada’s response not as retaliation but as prudent nation-building. Central to this strategy is the newly implemented “Buy Canadian” policy, which took effect on December 16. The policy prioritizes Canadian suppliers and materials in federal procurements valued at $25 million or more, with requirements for domestic steel, aluminum and wood in major construction and defense projects.

Announced as part of Budget 2025, the initiative allocates substantial funding to bolster small and medium-sized enterprises and extend preferences to infrastructure and grants programs. Mr. Carney has described it as a means to make Canada “its own best customer,” reducing vulnerability to external shocks in an uncertain global trade environment.

The timing of the U.S. congressional report—coming just days before the policy’s full rollout—underscores an ironic twist: Mr. Trump’s efforts to pressure Canada have galvanized national unity north of the border and prompted a deliberate shift toward economic self-reliance. Canadians, in quiet but measurable ways, have redirected spending domestically, boycotting U.S. vacations and favoring homegrown products.

While the trade war has exacted costs on both sides—Canadian exports to the U.S. have suffered, and some sectors face ongoing tariffs—the congressional critique highlights asymmetrical pain in American border economies. Republicans have largely remained silent on the report, but voices from affected states, including senators from Maine and Michigan, have echoed concerns about lost revenue.

As 2025 draws to a close, the U.S.-Mexico-Canada Agreement faces a scheduled review in 2026, offering a potential off-ramp. For now, however, the chilled relations serve as a reminder of the deep interdependence between the two nations. What began as tariff threats has evolved into a broader reassessment of economic ties, with Canada under Mr. Carney pursuing diversification and resilience.

The long-term consequences remain uncertain, but the immediate lesson is clear: in straining relations with its closest ally and largest trading partner, the United States risks isolating itself economically as much as diplomatically.