US tourism boards launch 'charm offensive' to counter Canadian boycott

Key points

• Canadian visits to the US dropped 25% in 2025, with spending down C$3.3 billion.
• New York launched the 'Northern Neighbour Deal' offering steep discounts on hotels and attractions.
• Trump's renaming of Lake Ontario to 'Lake America' and threats to annex Canada intensified the boycott.
• Las Vegas is offering a 1:1 exchange rate for Canadians, while Vermont ski resorts issued open letters welcoming neighbors.
• Canadian consumers are boycotting US products and travel, with some returning US-made goods to shelves.

Background

This follows a broader shift in 2026 where Canadians pivoted to domestic goods and services amid escalating tariffs on steel, autos, and consumer products. Earlier tensions included US tariffs on Canadian fiber and dairy, which disrupted supply chains and raised prices for US consumers, while Canadian retaliatory duties further strained the relationship.

How outlets are covering it

The Financial Times highlights the 'charm offensive' by US cities, noting that while some businesses like Pizza School NYC are participating, others see minimal bookings. USA Today emphasizes that borders remain open and tariffs have limited direct impact on travel costs, but notes a 9.3% drop in Canadian arrivals through May. Spectrum News NY1 focuses on border communities like Ellicottville, where local leaders are reassuring merchants that Canadians are welcome, though the weak Canadian dollar and political tensions continue to suppress spending. The outlets agree on the decline in Canadian tourism but differ on the primary driver: FT and Spectrum point to political hostility and the 'Elbows Up' movement, while USA Today suggests the impact is more about sentiment than direct cost increases.

Why it matters

The tourism sector is a significant economic driver for US border communities, and the sustained decline in Canadian visitors threatens local businesses and employment. The political rhetoric from the US administration has created a cultural rift that may outlast the trade negotiations, potentially reshaping long-term consumer behavior and cross-border economic ties.

What to watch

Tourism boards will continue to monitor visitor numbers and adjust promotions as the trade situation evolves. Canadian consumers may maintain their boycott if political tensions persist, while US businesses may face continued pressure to adapt to a shrinking Canadian market. The outcome of US-Canada trade talks will likely influence whether the 'Elbows Up' movement gains or loses momentum.