Canadians’ rising commitment to “buy local” in response to US President Donald Trump’s proposed tariffs and unwelcome takeover threat could produce a drop in cross-border visitation to US retail casinos in northern states.
Based on data shared by the US Travel Association (USTA), Canada is America’s top source of international travel. In 2024, Canadians’ love of US shopping resulted in $20.5 billion spent on 20.4 million US visits—equivalent to 140,000 US jobs. The USTA suggests a 10% decrease would mean 2 million fewer visits, $2.1 billion in lost spending, and 14,000 fewer jobs.
The most popular tourist destinations have the most to lose. Florida, California, Nevada, New York, and Texas could see retail and hospitality revenue decline due to a reduction in longer-term stays. For example, in 2023, approximately 30% of Las Vegas’s international travelers originated from Canada. On average, those visitors spend $1,100 per person daily—not including gambling.
However, a similar decline in cross-border day and weekend trips would likely harm border states like Michigan and its many destination casinos. Whether Canadian properties—like Caesars Windsor, an Ontario casino—will see a boost in Canadian spending, a reduction in American visitors, or both is less certain.
References to ’51st State’ strike nerves in Canada
Due to the tariffs and other threats, Canadian politicians—including outgoing Prime Minister Justin Trudeau and BC Premier David Eby—have urged Canadians to rethink US travel.
According to a Global News report, the target painted on Canada’s back is already substantially impacting businesses along the border.
Peter Raju, who owns the Peace Arch Duty Free Shop, told Global his business has declined over 80% since the “buy local” push began.
Unfortunately for the shop on the BC side of the Canada-US border, Raju said Canadians have stopped crossing into the US. He’s also seen fewer Americans making the trek north.
McKenzie McMillan, a consultant with The Travel Group, told Global that the agency has had “a number” of clients cancel their US travel plans. In addition to the tariffs, he said Trump’s suggestion of annexing Canada has ruffled Canadian feathers.
McMillan added that, as a result, people are looking for Canadian or other alternatives to US airlines, cruise ships, and hotel chains.
I think that beyond the tariffs, the 51st state comments has really hit a nerve with a lot of Canadians where they’re much more emotional about the situation and making tangible, actual changes to their plans.
Similarly, in an interview with Radio Canada, the Flight Centre’s Amra Durakovic noted that Canadians seem to be taking a stand in solidarity.
Instead of the US, Durakovic said Flight Centre agents are seeing an uptick in bookings to destinations including the Atlantic provinces, Antigua, Mexico, and Portugal.
She added that it’s an “anywhere but the US” sentiment for many customers. And if that trend keeps up, it will likely impact several US industries.
Detroit reaps millions from Windsor annually
According to Click On Detroit, Windsor, Ontario Mayor Drew Dilkens plans to veto a city council decision to subsidize the Windsor-Detroit Tunnel bus line. The service brings about 40,000 Canadians (and our money) into Motor City annually.
In a released statement, Detroit Windsor Tunnel spokesperson Ryan Bridges responded to the decision.
While we understand the broader economic and political factors, we remain hopeful that this essential service will return.
The Tunnel has been a cornerstone of economic integration between Windsor and Detroit for over 90 years, generating nearly $595 million in annual economic impact for Michigan. The City of Windsor is and will always remain a critical partner.
At the same time, concerned US lawmakers—including Congresswoman Haley Stevens—are pushing Trump to negotiate.
Stevens is particularly worried about the region’s automotive factories.
These disruptions that don’t build off the consistency and certainty so needed in the automotive industry – it causes not just heartburn, but it does have a cost.
Additionally, Pure Michigan’s vice president, Kelly Wolgamott, said Michigan’s official travel and tourism campaign will continue to welcome Canadians while closely monitoring cross-border developments.
We will continue to monitor federal policies as they evolve, however, Canada remains a vital trade partner for Michigan’s economy, and the MEDC and Travel Michigan will continue to extend a warm welcome to Canadian visitors as they explore the natural beauty, vibrant communities, and rich history and culture found across Michigan’s two peninsulas.
However, for many Canadians, Trump’s threats could be enough to spend more of our time and dollars at home.
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