Canada’s Decline in US Border Visits Hits Vermont Hard: Shocking Economic Impact Revealed!

Published on December 12, 2025

A recent report released by the Democrats on the Joint Economic Committee has shed light on the significant decline in Canadian visitors to U.S. states bordering Canada. The report, published on Wednesday, draws attention to various economic consequences, particularly for Vermont, highlighting a substantial downturn in both border crossings and consumer spending from Canadian visitors.

Decline in Border Crossings: A Key Indicator

According to the U.S. Customs and Border Protection data cited in the report, a notable 28% decrease in passenger vehicles crossing the Vermont-Canada border has been observed. This sharp drop points to the economic challenges faced by states that typically rely on Canadian tourism and trade. The figures are a clear reflection of the broader trend impacting the U.S. states bordering Canada, where Canadian visitors have traditionally contributed significantly to the local economy.

Reduced Spending from Canadian Tourists

Another crucial data point highlighted in the report comes from the Vermont Agency of Commerce and Community Development, which indicates a staggering 49% decrease in credit card purchases made by Canadian visitors compared to the previous year. This decline in consumer spending is a clear indication of the economic strain that local businesses, particularly those in tourism and retail, are experiencing due to the reduced number of Canadian visitors.

Local Businesses Struggle, Yet Some Begin to See Relief

While some businesses have reported ongoing struggles, others have seen signs of recovery. One such business owner, Christa Bowdish, who operates the Old Stagecoach in Waterbury, has shared her experiences regarding the significant decrease in Canadian clientele. Bowdish noted that roughly 15% of her clients were Canadian, but over the course of the past year, that percentage plummeted to just 1%. This drastic reduction has had a direct impact on her ability to provide for her staff, leaving her unable to offer the generous benefits she had hoped to provide.

Bowdish explained that while she has refrained from cutting pay for the employees who remained, the overall compensation package has been affected. She emphasized the difficulty in offering raises or bonuses, which had been part of her plans to reward and retain her team. The situation underscores the challenges that small business owners in border states are facing as they adapt to changing economic conditions and a reduced influx of Canadian visitors.

Vermont’s Tourism Struggles: A Mixed Outlook

Despite the challenges faced by some local businesses, there are areas where the economic impact has been less severe. For instance, Jay Peak Resort, a popular destination in Vermont, has not experienced a shortage of visitors, thanks in part to favorable snowfall. Steve Wright, the General Manager of Jay Peak, reported that the resort saw steady traffic throughout the winter season. However, the summer months, which typically see Canadian visitors playing golf, experienced a notable decline in Canadian tourists, aligning with the broader trend across the region.

Wright also highlighted the impact of tariffs on steel, particularly on the resort’s ability to purchase necessary snow equipment. Although the exact cost increase is still being calculated, Wright confirmed that the impact was significant, with the price hikes reaching double digits. This added cost to operational expenses further complicates the financial landscape for businesses relying on tourism and leisure spending, already strained by the decline in Canadian visitors.

Broader Economic Effects on Border States

The report’s findings underscore the broader economic repercussions of the downturn in cross-border travel and tourism. Canadian visitors have historically played a crucial role in the economies of U.S. states like Vermont, where tourism and related industries have benefited greatly from the influx of international travelers. With both the decrease in border crossings and the reduction in spending, local economies are feeling the strain, and the recovery process remains uncertain.

The challenges faced by Vermont and other border states are compounded by a range of factors, including fluctuating tariffs and the broader economic conditions affecting both the U.S. and Canadian markets. As businesses continue to navigate these difficulties, the full extent of the economic impact may take time to fully emerge.

The Road Ahead: A Slow Recovery

While some businesses, such as those at Jay Peak Resort, may find a path to recovery, the overall outlook for businesses heavily reliant on Canadian tourism remains cautious. As long as the decline in border crossings and consumer spending continues, it is unlikely that Vermont and other border states will see a quick recovery. Local businesses will need to adapt to the changing circumstances, finding new ways to attract visitors and manage the ongoing economic challenges.

For business owners like Christa Bowdish, the struggle continues as they attempt to balance financial pressures with their commitment to employees and customers. The inability to provide raises, bonuses, or expanded benefits is a reflection of the broader struggles in the region, as businesses work to stay afloat in a rapidly changing economic landscape.

Conclusion: Understanding the Impact

The release of this report provides valuable insight into the challenges faced by U.S. states bordering Canada, particularly in Vermont, due to the decline in Canadian visitors. As the data reveals, the consequences are far-reaching, affecting both border crossings and consumer spending. While some businesses are beginning to see signs of relief, many are still grappling with the reduced influx of Canadian tourists, which has led to lower sales and financial strain. The road to recovery may be slow, but the resilience of these businesses and their communities will be key to overcoming these challenges in the years to come.