Dive Brief:
- On Monday, the Hotel Association of New York City called on the federal government to resolve the escalating trade war between the U.S. and Canada, claiming the conflict threatens to deepen economic challenges that New York hotels are facing.
- HANYC’s plea came after President Donald Trump said Monday that he would impose 50% tariffs on certain Canadian goods after trade negotiations between the countries broke down. On Tuesday, Canada struck back with retaliatory tariffs, Supply Chain Dive reported.
- The latest tariffs continue a more than yearlong trade dispute between the U.S. and Canada, which has contributed to lost visitation from Canadian tourists and business from Canadian tourism partners in New York, per HANYC. Now, “the new tariff war threatens to make matters worse” for the city’s hotel industry, which is grappling with additional economic headwinds, the association said.
Dive Insight:
New York’s tourism economy, and the hotel industry it supports, “cannot afford another year of trade wars with Canada that drive away our most important international visitors,” HANYC President and CEO Vijay Dandapani said in a Monday news release. The conflict stands to threaten New York’s 40,000 hotel workers as well as billions of dollars in annual tax revenue the industry generates, according to HANYC.
“Canadian visitors are critical to our small businesses, jobs and the wellbeing of our workers,” Dandapani said. “We are already seeing a sharp decline in Canadian visitation this year on top of a steep drop last year that resulted in a 28% decrease in spending.”
In 2025, New York saw 26% fewer Canadian visitors than the prior year, with Canadians spending 14% less than they did pre-pandemic, according to HANYC. Last month, New York State Comptroller Thomas DiNapoli said the city “remained vulnerable” due to lagging international visitor numbers.
According to Dandapani, if the federal government fails to strike a trade deal with Canada, New York “risks losing even more visitors from our number one tourism partner and economic activity our sector depends on.”
The tourism decline would exacerbate headwinds that New York hotels have faced this year, including travel restrictions, slowed revenue growth, persistent inflation, rising operating costs and immigration crackdowns, per HANYC. Hotels nationwide have faced similar challenges.
Both the U.S. and Canada’s supply chains “rely on cross-border trade that helps ensure reliable access to essential goods while keeping costs manageable for hotels and travelers alike,” Brett Horton, chief advocacy officer for the American Hotel & Lodging Association, told Hotel Dive in a written statement.
Additionally, a strong partnership between the countries “provides certainty for businesses, helps keep travel affordable and strengthens one of the world’s most integrated travel economies,” Horton said.
As such, “reducing tensions and reaching a swift resolution to trade disputes will help preserve that strong partnership and keep travel and commerce moving across our shared border,” he said.
Beyond New York, Las Vegas saw a noticeable decline in Canadian tourism in 2025, which resulted in widespread revenue declines among resort operators.
