Don’t forget tourism in trade war debate
This opinion piece was originally printed in Crain’s Detroit Business on March 6, 2025.
Builders are working diligently to complete the Gordie Howe International Bridge, the longest cable-stayed bridge in North America that will connect Detroit and Canada, boost the regional economy, create jobs and strengthen the supply change.
But will it deliver the economic boom to tourism in Detroit and Windsor that is expected?
The 25% tariffs on Canadian imports will be levied against the production of motorcoaches, which will make it more expensive for travelers to book tours and tickets. These price increases will limit travel, and harm the communities who depend on buses full of people to stay at their hotels or eat in their restaurants.
On top of the higher costs, Canadians are already canceling planned U.S. vacations due to the negative tensions in the news. As we head into the busiest travel season of the year, the motorcoach, group tour and tourism industry will be among the hardest hit. The situation will only worsen with increased prices passed on to the consumer. Michigan, a top destination for Canadian tourists, stands to suffer disproportionately, with Canadian visitors contributing significantly to its $29.3 billion tourism industry. A drop in Canadian tourism will especially impact Detroit residents and business owners, who benefit significantly from cross-border travelers.
The relationship between the United States and Canada is one of the strongest and most mutually beneficial in the world, particularly in cross-border travel, which fuels economies on both sides. Canada is the largest source of international visitors to the U.S., with 20.4 million trips in 2024 alone. These visits generated $20.5 billion in spending and supported 140,000 American jobs, according to the U.S. Travel Association.
Group and packaged travel play a crucial role in cross-border travel, bringing people together for school trips, athletic events, business conferences, sightseeing and tourism. According to the U.S. Travel Association, a 10% decline in Canadian tourism could mean $2.1 billion in lost revenue and 14,000 job losses nationwide.
Now, more than ever, we must advance policies that encourage travel and highlight the best of what both nations have to offer. The ongoing trade disputes threaten to undermine the long-standing economic ties between our two countries, with effects reaching far beyond tourism. Detroit and other border cities depend on policies that promote — not discourage — cross-border travel.
Detroit residents and business owners should contact their elected officials to urge support for establishing an exclusion process that would create a pathway for lifting tariffs on motorcoaches and supporting the tourism industry. Protecting this vital economic relationship is not just about travel. It is about jobs, economic stability and the shared prosperity of both nations.
