New York City Hotels Urge US-Canada Trade Resolution

Trade Dispute Escalates

The Hotel Association of New York City (HANYC) has appealed to the federal government. It seeks a resolution to the escalating trade conflict between the United States and Canada. HANYC states the dispute deepens economic challenges for New York City hotels. The appeal follows President Donald Trump’s recent announcement.

He plans to impose 50% tariffs on specific Canadian goods. This decision came after trade negotiations between the two nations failed. Canada responded swiftly with its own retaliatory tariffs. This latest development continues a trade disagreement spanning over a year. HANYC notes this dispute has already led to fewer Canadian visitors.

It also reduced business from Canadian tourism partners in New York. The new tariff conflict risks worsening conditions for the city’s hotel industry. This sector already contends with various economic pressures.

Visitor Decline and Economic Impact

Vijay Dandapani, HANYC President and CEO, emphasised the urgency. New York’s tourism economy, and its supporting hotel industry, cannot withstand further trade conflicts. He stated Canadian visitors are vital for small businesses, jobs, and worker wellbeing. The ongoing dispute threatens 40,000 hotel workers in New York.

It also jeopardises billions of dollars in annual tax revenue generated by the industry. HANYC data shows a significant decline in Canadian visitation. New York saw 26% fewer Canadian visitors in 2025 compared to 2024. Canadian spending also decreased by 14% from pre-pandemic levels.

The association reports a sharp decline in Canadian visitation this year, following a steep drop last year. Dandapani warned that failure to reach a trade agreement risks losing more visitors. Canada remains New York’s primary tourism partner.

Broader Industry Challenges

New York State Comptroller Thomas DiNapoli recently stated the city remains vulnerable. This vulnerability stems from persistently low international visitor numbers. HANYC connects the trade dispute to broader economic headwinds facing New York hotels. These include travel restrictions, slower revenue growth, and persistent inflation.

Rising operating costs and immigration crackdowns also contribute to these difficulties. Hotels across the United States have faced similar challenges. Brett Horton, Chief Advocacy Officer for the American Hotel & Lodging Association (AHLA), commented on the situation. He highlighted that US and Canadian supply chains rely on cross-border trade.

This ensures reliable access to essential goods. It also helps manage costs for hotels and travellers alike. A strong partnership between the countries provides business certainty. It also helps keep travel affordable and strengthens one of the world’s most integrated travel economies.

Outlook for Tourism and Commerce

A swift resolution to trade disputes would help preserve this strong partnership. It would also ensure continued movement of travel and commerce across the shared border. Without a federal trade deal with Canada, New York risks further visitor losses. This would severely impact the economic activity the hotel sector depends on.

A sustained tourism decline would exacerbate existing challenges for New York hotels. Beyond New York, other major destinations have also felt the impact. Las Vegas experienced a noticeable reduction in Canadian tourism in 2025. This led to widespread revenue declines among resort operators there. The industry awaits developments that could stabilise this crucial international travel corridor.