Introduction to the Travel Trade War

The travel trade war between Canada and the US has been a significant issue in recent years. According to CBC News, Canadian travel to the US has dropped sharply since President Donald Trump took office. This decline has resulted in a substantial loss for the US economy, with $5.7 billion in lost tourism revenue.

Causes of the Decline in Canadian Travel to the US

The decline in Canadian travel to the US can be attributed to several factors, including fear and tariffs. As reported by The Fulcrum, Canadian tourism to the US is down 33% year-over-year, marking six consecutive months of steep declines. Additionally, air travel has dropped 22% in June, while border crossings by car fell 38% in May and 33% in June.

Impact on the US Economy

The decline in Canadian travel to the US has had a significant impact on the US economy. According to The New York Times, international travel spending in the US is expected to drop 3.2% to $173 billion this year. This decline has resulted in a substantial loss for the US hospitality industry, with a projected winter shortfall.

Canada’s Response to the Travel Trade War

Canada has responded to the travel trade war by redirecting exports and rallying domestic support. As reported by BBC News, Canada’s trade with the US was worth $1.3 trillion last year, while trade with the Indo-Pacific was a fraction of that at just over $260 billion. Canada is adapting by redirecting exports and rallying domestic support, playing a long game, hoping US economic pain will eventually shift Trump’s calculus.

Conclusion

In conclusion, the travel trade war between Canada and the US has had a significant impact on the US economy. Canada’s response to the trade war has been to redirect exports and rally domestic support. As the situation continues to evolve, it will be interesting to see how the US responds to the decline in Canadian travel and the impact on the US economy.