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Impact of US-Canada Trade Dispute on Las Vegas Tourism

by Sienna Marques
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Impact of US-Canada Trade Dispute on Las Vegas Tourism

During a recent visit to Las Vegas, President Donald Trump spoke about the impact of his federal tax changes on tipped workers. While there, he made a point to address U.S.-Canada relations, characterizing Canada's stance as confrontational. "Canada's nasty, they are, they're nasty," Trump told attendees at the Red Rock Casino Resort and Spa.

These remarks are part of a broader antagonistic theme towards Canada during Trump's second term. Just three weeks later, the two nations find themselves embroiled in a trade dispute that continues to escalate. Following unsuccessful negotiations, the U.S. instituted hefty tariffs of 50% on approximately $20 billion in Canadian goods over the weekend. In response, Canada announced retaliatory tariff increases on American products scheduled to begin on September 8.

The White House emphasized its position, asserting that "Canada has been ripping off the United States for decades," accusing it of a long-standing pattern of abuse. Canadian Prime Minister Mark Carney acknowledged the shift in the relationship dynamics, stating, "I recognized from the beginning that America has changed, and that we will not return to our old relationship."

The trade tensions have led Las Vegas stakeholders to monitor U.S.-Canada relations closely. After a 7% drop in international travel to Harry Reid International Airport in 2025, data indicates that this segment has further declined by 9% in 2026. The city's primary Canadian airlines, Air Canada and WestJet, reported a 22% and 28% decrease in traffic in 2025, respectively, with continued downturns of 13% and 23% through July of this year.

In light of the federal government's tough stance on Canada, Las Vegas representatives have taken proactive steps to foster a positive relationship with potential visitors. Steve Hill, CEO of the Las Vegas Visitors and Convention Authority, has made several trips to Canada over the past year aiming to rebuild trust. This month, he and MGM Resorts CEO Bill Hornbuckle traveled together, reiterating the city's appeal to Canadian tourists. “Las Vegas loves you, we need you, the reason I’m sitting here is [because] we want you,” Hornbuckle stated on Your Morning Vancouver on August 18, highlighting Canada's significance as a top international destination for Las Vegas and the wider U.S.

In a bid to attract Canadian visitors, three downtown Las Vegas casinos owned by Derek Stevens—Circa, The D, and Golden Gate—launched the "Vegas At Par" promotion. This initiative provided Canadian travelers with hotel and gaming discounts by aligning their currency value to $1 USD to $1.3 CAD, which resulted in significant cost benefits for visitors with Canadian IDs. Stevens noted on X that "Las Vegas misses Canada" earlier this year.

Overall, Canadian travel to the U.S. dropped by 25% in 2025, as reported by the Canadian government. Visitation from Canada declined from 39 million in 2024 to 29.1 million in 2025, with Canadian spending in the U.S. also falling by $3.3 billion last year. Statisticians Laura Presley and Carter McCormack observed that Canadian travel sentiment shifted sharply following the U.S. administration change in early 2025, resulting in a significant rise in border crossings from the U.S. becoming two-thirds of all Canadian resident crossings from abroad by the end of 2025.

Las Vegas anticipates a busy second half of 2026, with key travel periods including Labor Day, Halloween, Thanksgiving, Christmas, and New Year’s. The city's lineup of events, such as football, hockey, women's basketball, F1 racing, and college sports, will also be essential during this time. The diplomatic tension with Canada, however, comes at a critical juncture for tourism.

Hockey may offer a pathway to boost Canadian travel, particularly with the Las Vegas Golden Knights set to face off against several Canadian teams in October and November: the Toronto Maple Leafs, Calgary Flames, Ottawa Senators, Vancouver Canucks, and Montreal Canadiens.

Brendan Bussmann, a consultant with B Global Advisors, highlighted that hockey fans represent a significant segment of Canadian tourists, alongside business and leisure travelers. He noted the stronger performance of Air Canada over WestJet as indicative of increased business travel, but he remains optimistic about long-term Canadian tourism trends. “I think [Canada] will continue to play a significant role in the overall international mix, at least in the short-term,” Bussmann remarked, adding that whether for hockey, vacation, or other reasons, Canadian visitors will still travel to Las Vegas.