NYC Hotels Demand End to Escalating US-Canada Tariff Dispute
The Hotel Association of New York City warns that 50% tariffs and retaliatory measures threaten 40,000 workers as Canadian travel falls sharply.
The short answer
The Hotel Association of New York City has urged the federal government to settle its trade dispute with Canada following new 50% tariffs and retaliatory measures. Leaders warn the conflict jeopardizes 40,000 hotel jobs after Canadian visitation fell 26% in 2025.
The short version
- HANYC warned that 40,000 hotel jobs and billions in annual tax revenue are threatened by the US-Canada trade conflict.
- 2025 Canadian visitation to New York City fell 26% year over year, with spending remaining 14% below pre-pandemic levels.
- Las Vegas resort operators also reported widespread revenue declines due to reduced Canadian arrivals in 2025.
The Hotel Association of New York City (HANYC) is demanding an immediate resolution to the escalating US-Canada trade conflict after President Donald Trump announced 50% tariffs on Canadian goods and Canada retaliated with tariffs of its own [1]. Hotel industry leaders warn the dispute threatens 40,000 New York hotel workers, billions in tax revenue, and critical international travel volume [1].
What triggered the latest clash between the US and Canada?
President Donald Trump announced on Monday that the United States would impose 50% tariffs on specific Canadian goods after bilateral trade negotiations collapsed [1]. On Tuesday, Canada responded by issuing retaliatory tariffs against American imports, as Supply Chain Dive reported [1]. This rapid escalation extends an ongoing trade dispute that has lasted more than a year, creating renewed friction across the northern border [1].
The confrontation directly impacts cross-border commerce, hotel supply networks, and inbound travel pipelines [1]. The American Hotel & Lodging Association (AHLA) highlighted that hotels on both sides of the border rely on seamless trade to control operating expenses and maintain predictable supply flows [1].
How steep is the drop in Canadian visitation to New York City?
Canadian travel to New York contracted sharply in 2025, recording a 26% year-over-year decrease in visitor volume, according to HANYC [1]. Hotel Dive reported that Canadian spending in New York also dropped 14% below pre-pandemic figures [1]. The association noted that this contraction followed a previous steep decline that had already erased 28% in traveler spending [1].
The following table outlines the documented trajectory of Canadian inbound travel metrics in New York:
| Metric | Recorded Change | Source Context |
|---|---|---|
| Canadian Visitation Volume (2025) | -26% year-over-year | HANYC annual data [1] |
| Canadian Traveler Spending (2025) | -14% vs. pre-pandemic baseline | HANYC economic report [1] |
| Prior Period Spending Drop | -28% decline | HANYC multi-year comparison [1] |
| NYC Hotel Workforce at Risk | 40,000 employees | HANYC workforce assessment [1] |
| US Proposed Tariffs | 50% on select Canadian goods | White House announcement [1] |
Why are hotel operators sounding the alarm now?
New York hotels cannot sustain continued trade hostilities that repel Canada, the city's largest international inbound travel market, according to HANYC President and CEO Vijay Dandapani [1]. Dandapani stated that the dispute endangers the livelihoods of 40,000 hotel employees and puts billions of dollars in annual tax contributions at risk [1]. Last month, New York State Comptroller Thomas DiNapoli warned that the city remained economically vulnerable due to sluggish international travel numbers [1].
Hotels are already absorbing several concurrent operational pressures, according to HANYC [1]. These industry challenges include travel restrictions, slowed revenue growth, persistent inflation, rising operating costs, and federal immigration crackdowns [1].
How does the trade dispute impact national hotel operations and supply chains?
Cross-border supply chains depend on open trade to guarantee regular access to essential goods while keeping operational expenses affordable for operators and guests, according to Brett Horton, chief advocacy officer for the AHLA [1]. Horton noted that maintaining an intact partnership provides business stability, preserves travel affordability, and protects one of the most integrated travel economies globally [1].
The impact reaches far beyond the New York market [1]. Las Vegas also experienced a noticeable contraction in Canadian tourism in 2025, causing widespread revenue drops among major resort operators [1].
Reported by
This article was written from the following reporting. Follow the links for the original coverage.
- [1]NYC Hotels Urge End to US-Canada Trade Dispute— Hotel Dive
Frequently asked
+What specific tariffs were announced between the US and Canada?
President Donald Trump announced 50% tariffs on select Canadian goods after trade talks broke down, prompting Canada to enact retaliatory tariffs against the US the following day [[1]].
+How much has Canadian travel to New York dropped?
New York experienced a 26% decline in Canadian visitors in 2025, while visitor spending dropped 14% below pre-pandemic baselines following an earlier 28% drop in Canadian expenditure [[1]].
+How many New York hotel jobs are affected by this trade dispute?
The Hotel Association of New York City reports that the ongoing trade conflict threatens the employment of 40,000 hotel workers across the city, along with billions in annual tax revenue [[1]].
+What other US markets are seeing Canadian tourism declines?
Las Vegas experienced a noticeable downturn in Canadian visitor arrivals in 2025, resulting in widespread revenue declines across resort operations [[1]].
+What other headwinds are New York hotels currently managing?
Hotels in New York are managing persistent inflation, rising operating costs, immigration crackdowns, slowed revenue growth, and ongoing travel restrictions alongside tariff disputes [[1]].
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