Trump's Tariffs on Canada: A Devastating Impact on Western New York's Economy and Tourism Industry

Strategic Insights -

US Senator Charles Schumer and local business leaders have sounded the alarm on the devastating impact of President Trump's tariffs on Canada, which has led to a significant decline in tourism and rising prices for families and small businesses across Western New York. Since Trump took office, nearly 975,000 fewer travelers have crossed the US-Canada border, with a staggering 40% decline in Canadian tourism contributing to a nearly 7% drop in hotel occupancy in Niagara Falls and a 7% decrease in hotel tax revenue in Erie County.

Key Takeaways:

  • The decline in Canadian tourism has resulted in a nearly 18% drop in revenue for ShopCraft, a gift shop and gallery in Buffalo, and a 39% decline in Canadian online traffic.
  • The Fashion Outlets of Niagara Falls USA have seen a 30% decrease in foot traffic, with various stores in the mall experiencing at least double-digit sales decreases.
  • The Aquarium of Niagara has seen an 18% decrease in attendance, and Artpark is projecting a 60% total loss of Canadian visitors, resulting in at least $150,000 in lost revenue.
  • BNP Empowered Print, a local print shop, predicts an annualized cost increase of over $225,000 due to Trump's tariffs on materials from Canada.
  • The tariffs are raising costs for families, with households with lower incomes hit hardest, and are expected to cost families nearly $2,400 every year.
  • Senator Schumer has announced that he will use a special fast-track process to force a vote to end Trump's destructive trade war with Canada and has called on NY House Republicans to stand up for Upstate NY businesses and working families footing the bill for Trump's tariff tax.
  • The Senate passed a bipartisan resolution to end tariffs on Canada earlier this year, and Schumer has co-led an amicus brief in the lawsuit challenging Trump's authority to levy tariffs.
  • Ending this costly trade war is key to protecting American families from price increases and job losses, according to Schumer.

Statistics:

  • 975,000: The number of fewer travelers who have crossed the US-Canada border since Trump took office.
  • 40%: The decline in Canadian tourism contributing to a nearly 7% drop in hotel occupancy in Niagara Falls.
  • 7%: The decrease in hotel tax revenue in Erie County.
  • 18%: The decline in revenue for ShopCraft, a gift shop and gallery in Buffalo.
  • 39%: The decline in Canadian online traffic.
  • 30%: The decrease in foot traffic at the Fashion Outlets of Niagara Falls USA.
  • $225,000: The predicted annualized cost increase for BNP Empowered Print due to Trump's tariffs on materials from Canada.
  • $2,400: The expected cost to families every year due to Trump's tariffs.
  • $150,000: The minimum amount of lost revenue for Artpark due to the decline in Canadian visitors.

Sources:

  • New York Senator Charles Schumer
  • Visit Buffalo Niagara President and CEO Patrick Kaler
  • Erie County Executive Mark C. Poloncarz
  • Niagara Falls Mayor Robert Restaino
  • Rupal Hospitality and Element Development Group President Nirel Patel
  • BNP Empowered Print President Thomas Majerski
  • The Budget Lab at Yale
  • Senate Democrats