NYC Hotels Urge End to US-Canada Tariff Dispute

The Hotel Association of New York City is urging the federal government to resolve a trade dispute with Canada after negotiations broke down, triggering 50 percent tariffs on Canadian goods and retaliatory measures [[1], [2]]. With Canadian arrivals dropping 26 percent in 2025, hospitality leaders warn that prolonged trade friction directly threatens 40,000 hotel jobs and billions in tax receipts [[1], [2]].

Why are New York hotel leaders demanding an end to Canadian tariffs?

Hotel leaders want an immediate resolution because cross-border trade friction is depressing travel from New York’s primary international feeder market [[1], [2]]. Asian Hospitality reported that U.S. President Donald Trump announced 50 percent tariffs on certain Canadian imports following failed negotiations, which Canada quickly countered with retaliatory levies [[1], [2]]. According to Hotel Dive, this escalating tariff conflict extends an impasse that has lasted more than a year [[1], [2]].

HANYC President and CEO Vijay Dandapani stated that the city cannot afford another year of bilateral trade tension that turns away inbound travelers [[1], [2]]. The association warned that the trade war threatens not only 40,000 hotel jobs but also 400,000 broader hospitality workers, small businesses, and billions of dollars in tax revenue generated by lodging [[1], [2]]. The Caribbean American Chamber of Commerce also pressed for a deal, warning that retaliatory tariffs elevate operating costs and force minority-owned businesses to close [1].

How sharp is the decline in Canadian tourism and spending?

Canadian inbound numbers to New York City dropped 26 percent year-over-year in 2025 [[1], [2]]. Spending by Canadian tourists fell 28 percent during that time, remaining 14 percent below pre-pandemic figures [[1], [2]].

The downturn carries deep consequences for citywide visitation balances, as detailed by recent economic monitors [1]. According to an analysis from New York State Comptroller Thomas DiNapoli, the destination welcomed 65 million visitors in 2025 [1]. However, domestic travelers made up 52.4 million or 81 percent of that figure, while international visitors accounted for just 12.5 million, leaving international volume at 92.6 percent of 2019 levels [1]. Comptroller Thomas DiNapoli noted that lagging foreign travel leaves the local hospitality market financially vulnerable [[1], [2]].

What performance headwinds are New York City operators facing?

New York City hotels are battling depressed operating margins, persistent inflation, escalating operational costs, and lower room yields [[1], [2]]. Revenue per available room (RevPAR) averaged $252.62 in the first half of 2026, dropping from an inflation-adjusted $277.76 during the first half of 2019 [1].

Occupancy rates remained below 2019 benchmarks in every single month of 2026 except January, which managed a modest one percentage point increase [1]. Based on pacing and forward bookings, HANYC projected that September 2026 occupancy would also fail to reach pre-pandemic levels [1]. Outside the tariff dispute, Asian Hospitality reported that labor constraints persist; the hotel workforce remains 12.9 percent smaller than in 2019, and the revocation of Haitian Temporary Protected Status (TPS) directly impacts 1,200 Haitian hotel staff [1].

How does the cross-border conflict affect hotels nationwide?

The trade dispute is disrupting cross-border tourism spending patterns across other major domestic markets, including Las Vegas [2]. Hotel Dive reported that Las Vegas experienced a marked decline in Canadian arrivals in 2025, which caused broad revenue decreases for resort operators [2].

National trade representatives emphasize that unresolved tariffs damage both visitor traffic and hotel purchasing pipelines [2]. Brett Horton, chief advocacy officer for the American Hotel & Lodging Association (AHLA), told Hotel Dive that U.S. and Canadian hotel supply chains depend on cross-border logistics to keep essential operating goods accessible and operational costs manageable [2]. Horton stressed that cross-border agreements provide operational certainty, preserve travel affordability, and protect one of the world's most integrated travel corridors [2].