Trump's Tariffs Take a Toll on American Workers

A recent report from the Center for International and Strategic Studies reveals an unexpected consequence of U.S. tariffs on Canada: economic pain for American workers in border towns.

The study estimates that Canadians' refusal to travel south of the border since Donald Trump's trade war began has cost between 10,000 and 30,000 leisure and hospital jobs in those areas, resulting in lost earnings of between US$500-million and $1-billion annually.

This is because every dollar collected in tariffs on Canadian goods has cost American workers in border towns between 5 cents and 10 cents. In fact, the U.S. Travel Association estimated that declining international tourism, including from Canada, would cost the overall economy US$5.7-billion in 2025 compared to the previous year.

A survey conducted this April found that 57% of Canadians said U.S. trade policies made them less likely to visit in 2027, even after Trump eased tariffs last spring. This 'travel boycott' adds pressure on Trump's erratic trade war and bolsters the Canadian economy as domestic tourism pumped $83.1-billion into it in 2025, an increase of 8.7% compared to 2024.