Ontario Joins Toronto, Montreal, Calgary, Vancouver, Edmonton, and More Canadian Biggest Cities Feeling the Heat of Steepest Tourism Decline as US-Canada Trade Tariff Dispute Pains Travel Sector Economy

Published on December 11, 2025

By: Tuhin Sarkar

Ontario, alongside Toronto, Montreal, Calgary, Vancouver, Edmonton, and more of Canada’s biggest cities, is feeling the severe impact of the steepest tourism decline in recent years. As the US-Canada trade tariff dispute intensifies, these cities are facing a perilous economic situation.

The travel sector, once thriving on cross-border tourism, is now struggling to stay afloat. The US-Canada trade tariff dispute has not only strained trade relations but has also sent shockwaves through Canada’s vital tourism industry.

With US tourists staying away due to higher costs and travel uncertainty, cities like Toronto, Montreal, Calgary, and Vancouver are seeing fewer visitors. Ontario, in particular, is grappling with the ripple effects. The tourism economy, a key pillar of Canada’s growth, is under pressure, making this a critical moment for the country’s tourism recovery. Continue reading to learn more about how these cities are navigating these challenges.

The Canadian tourism sector is facing a new threat, and it’s not just from global uncertainty or the pandemic. The US–Canada tariff disputes have taken the tourism industry by storm. With heightened tensions and escalating trade barriers, Canada’s biggest cities are feeling the heat. From lost visitors to crumbling hotel bookings, the fallout from these economic clashes has placed Canadian cities in peril. Find out how these tariff disputes are affecting cities like Toronto, Montreal, Calgary, and Vancouver. This detailed report exposes the shocking consequences of the trade war on Canada’s tourism and the regions most at risk. Will your favorite city suffer?

The Start of the U.S.–Canada Trade War: The Looming Crisis in Canada’s Cities

The U.S.–Canada trade war is no small matter. The ongoing tariff disputes between these two neighbouring nations are sending shockwaves throughout the global economy. While it may seem like an issue for trade experts or politicians, the real effects are being felt by everyday Canadians. For the travel and tourism sector, the consequences are devastating. In particular, Canada’s major cities are bearing the brunt of these economic tensions.

Toronto, Montreal, Vancouver, Calgary, and other Canadian cities that thrive on international tourism are seeing a slow but steady decline in visitors, especially from the United States. With tariffs making cross-border travel more expensive and complicated, American tourists are reconsidering their trips to Canada. This is just the beginning, as the longer these disputes drag on, the worse it could get for Canadian tourism.

The Economic Fallout of U.S.–Canada Tariff Disputes: Tourism at Risk

The tourism sector is a key driver of the Canadian economy. It generates billions of dollars every year and supports hundreds of thousands of jobs across the country. Yet, the ongoing tariff disputes are putting all of this at risk. According to recent reports, Canada’s tourism sector could see a significant downturn if these tariffs continue to escalate.

Tariffs and trade barriers are making it more difficult for Americans to travel to Canada. With the added cost of tariffs on goods and services, many U.S. tourists are opting to stay home instead of visiting their neighbours to the north. As a result, cities like Toronto, Vancouver, and Montreal, which rely heavily on American visitors, are beginning to feel the sting of fewer arrivals.

The Conference Board of Canada has predicted that the longer the tariff disputes drag on, the more damaging the effects will be. It is not just about fewer tourists from the U.S.; it’s also about the ripple effect on businesses that depend on international visitors. Hotels, restaurants, and local attractions are already seeing declines in bookings. The tourism industry is worried about what the future holds as the tariff war continues to simmer.

Canada’s Biggest Cities in Peril: Vulnerability Exposed

Canada’s biggest cities, such as Toronto, Montreal, and Vancouver, are among the most vulnerable to the impact of U.S.–Canada tariff disputes. These cities depend heavily on U.S. tourism for revenue. With a large portion of their visitors coming from across the border, these cities are feeling the pressure as fewer American tourists make the trip north.

The loss of U.S. visitors is not just a blow to the tourism sector; it affects the local economy in countless ways. Hotels and accommodations are seeing fewer bookings, restaurants are serving fewer customers, and even transportation services are feeling the pinch. The impact is widespread, affecting everyone from small businesses to large corporations. It’s a situation that could spell disaster for cities that rely on tourism as a key economic driver.

For cities like Toronto, which attracts millions of U.S. visitors every year, the consequences of these trade disputes could be severe. If the tariff war continues to escalate, these cities could see long-lasting damage to their tourism sectors. It’s a critical time for Canadian cities, and the tourism industry is holding its breath.

The Border Dilemma: How Cross-Border Travel is Being Hit Hard

One of the biggest challenges caused by the U.S.–Canada tariff disputes is the disruption to cross-border travel. With American tourists finding it increasingly expensive to visit Canada, cities like Windsor, Niagara Falls, and Vancouver, which are located near the U.S. border, are feeling the effects the most. The simple act of crossing the border is becoming more complicated, time-consuming, and costly for American travellers.

Windsor, Ontario, a city that thrives on its proximity to Detroit, has seen a significant decline in cross-border traffic. The situation is similar in Niagara Falls, where U.S. tourists flock to the Canadian side for its world-renowned attractions. However, the ongoing tariff dispute has made travel less appealing, resulting in fewer visitors to these popular destinations.

Vancouver, on the West Coast, is also feeling the sting of reduced cross-border traffic. The city has always been a popular stop for American tourists, but with higher costs and tariffs driving them away, Vancouver’s tourism industry is bracing for a tough future.

Canada’s Border Cities: The Unseen Impact of Tariff Disputes on Local Economies

The U.S.–Canada tariff disputes are not just affecting tourism; they are having a ripple effect on the economies of border cities. These cities, which rely on cross-border trade and tourism, are struggling to cope with the fallout. The loss of American tourists is hurting local businesses, especially those that cater to international visitors.

In Windsor, for example, many businesses depend on the influx of American shoppers. Tariffs have made it more expensive for U.S. visitors to shop in Canada, leading to fewer cross-border trips and a decline in retail revenue. The situation is even worse for smaller businesses that can’t absorb the increased costs. As a result, local economies are feeling the pressure, and it’s unclear how long they can survive without the vital tourism dollars that once flowed in from the U.S.

Other cities like Montreal and Calgary are facing similar challenges. While these cities may not be as dependent on cross-border tourism as Windsor or Niagara Falls, the overall decline in U.S. visitors is taking its toll. Hotels, restaurants, and local attractions are all reporting lower-than-expected bookings, and it’s not just American tourists who are staying away – Canadians are also holding back from travelling domestically due to the economic uncertainty caused by the tariffs.

The Future of Canadian Tourism: What Lies Ahead?

The future of Canadian tourism is uncertain. If the tariff disputes between the U.S. and Canada continue, cities across Canada may experience long-term damage to their tourism sectors. Fewer visitors from the U.S. mean fewer hotel bookings, lower restaurant sales, and a decline in tourism-related activities. While some cities may be able to weather the storm, others will struggle to stay afloat.

The Canadian tourism industry must adapt quickly if it hopes to survive this storm. Some cities are already pivoting to attract domestic travellers, but that won’t be enough to make up for the loss of U.S. visitors. The government and industry leaders must take action to ensure that Canada’s tourism sector remains competitive in the face of these economic challenges.

In the end, the U.S.–Canada tariff disputes could lead to a dramatic reshaping of Canada’s tourism landscape. The cities most affected will need to reinvent themselves and find new ways to attract visitors. Only time will tell if Canada can recover from the fallout of this trade war.

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Navigating the Future of Canada’s Tourism Amid US-Canada Trade Tariff Dispute

The US-Canada trade tariff dispute has left a significant mark on Canada’s tourism industry, with major cities such as Ontario, Toronto, Montreal, Calgary, Vancouver, and Edmonton all feeling the heat. As StatsCan reports show, the number of U.S. tourists arriving in Canada has sharply declined, making it clear that the trade tensions are having a direct and profound effect on tourism. For example, according to StatsCan’s travel data, U.S.-resident trips dropped by 3.0% in 2025, signaling a serious reduction in cross-border visits. This decline is amplified in cities like Toronto, where a heavy reliance on U.S. visitors is now proving detrimental.

The Conference Board of Canada (CBoC) also highlights the potential economic fallout, projecting a CAD 8.2 billion loss in tourism GDP over the next several years if the tariff disputes persist. Cities most dependent on international and U.S. tourism, such as Montreal and Vancouver, are particularly vulnerable. CBoC’s report predicts that these cities could see further downturns in key sectors, from hospitality to retail. In response, Global Affairs Canada has acknowledged the uncertainty surrounding the trade environment and its broader economic consequences.

Despite the challenges, there is some hope through the boost in domestic tourism, with cities across Canada pushing for stronger local campaigns. However, as tourismdatacollective.ca suggests, domestic visitors alone will not fully replace the revenue lost from declining U.S. tourist traffic. This will require ongoing adaptation, innovation, and support for the tourism sector from both the government and the private sector.

To fully understand the current landscape and future projections, explore the latest official sources:

• StatsCan – Travel between Canada and other countries
• CBoC – The True Cost of the Trump Tariffs / City Impacts
• CBoC – Impact of Trump Tariffs on the Tourism Sector
• Global Affairs Canada – Trade Policy Uncertainty
• Tourism Data Collective – National Travel Statistics