Earlier this month, during a visit to Las Vegas, President Donald Trump highlighted the positive impacts of his tax reforms for tipped workers, but also made pointed remarks about foreign relations, particularly with Canada, which is a crucial market for the city. "Canada’s nasty, they are, they’re nasty," Trump told an audience at the Red Rock Casino Resort and Spa.
This comment reflects the escalating tensions between the U.S. and Canada during Trump’s second term. The situation has turned more contentious in recent weeks, culminating in the U.S. imposing 50% tariffs on approximately $20 billion worth of Canadian goods. In retaliation, Canada announced plans to implement its own tariffs on American products, set to take effect on September 8.
A statement from the White House underscored this tension, declaring that "Canada has been ripping off the United States for decades," and emphasized a record of behavior that was "clear and deliberate." Canadian Prime Minister Mark Carney responded, acknowledging a shift in relations: "America has changed, and that we will not return to our old relationship."
For Las Vegas, these developments are notable given the city's dependence on Canadian tourists. International travel to Harry Reid International Airport dropped 7% last year, and so far in 2026, it has dipped an additional 9%. The two largest Canadian airlines servicing Las Vegas, Air Canada and WestJet, reported a 22% and 28% decline in traffic, respectively, in 2025. Both airlines continued to see reduced passengers through July, with Air Canada down 13% and WestJet down 23%.
In light of the U.S. government's hardline stance towards Canada, Las Vegas leaders have proactively sought to improve relationships with potential visitors from the north. Steve Hill, CEO of the Las Vegas Visitors and Convention Authority, has made several trips to Canada in the past year to alleviate concerns and foster goodwill. Alongside MGM Resorts CEO Bill Hornbuckle, Hill traveled to Canada again this month.
"Las Vegas loves you, we need you, the reason I’m sitting here is [because] we want you," Hornbuckle expressed during an interview on Your Morning Vancouver on August 18. "Canada has been the number one international destination for Las Vegas and for the United States forever."
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 year. This initiative matched currencies for Canadian visitors, providing significant discounts given the current exchange rate of $1 USD to $1.3 CAD. Stevens noted on social media that "Las Vegas misses Canada."
Overall, Canadian travel to the U.S. fell by 25% in 2025, with visitation plunging from 39 million in 2024 to 29.1 million in 2025. Furthermore, Canadian spending in the U.S. decreased by $3.3 billion in the same timeframe. According to statisticians Laura Presley and Carter McCormack, the change in U.S. administration in early 2025 and the adoption of America First policies led to a rapid shift in Canadian travel sentiment. By the end of 2025, two-thirds of all border crossings from Canada were returning from the U.S.
Looking ahead, the latter half of the year is a bustling period for Las Vegas, driven by holiday travel and various events. The city’s calendar features crucial holidays and a range of sporting events in football, hockey, women’s basketball, F1 racing, and more, with a late-summer diplomatic scramble adding pressure to perform.
Hockey may be pivotal in rekindling interest among Canadian tourists. The Las Vegas Golden Knights, following their third Stanley Cup Finals appearance in nine years, have scheduled five games against Canadian teams in October and November, including matchups with the Toronto Maple Leafs and Montreal Canadiens.
Consultant Brendan Bussmann of B Global Advisors shared that hockey fans represent a significant segment of Canadian travelers, alongside business and leisure tourists. While noting that Air Canada is faring better than WestJet in terms of business travel, he remains optimistic about the long-term outlook for visitors from Canada. "I think [Canada] will continue to play a significant role in the overall international mix, at least in the short-term. As we have seen over the last year, that market has started to come back, and even with the latest volley back and forth, people will come here whether it’s for hockey, vacation, or anything else," Bussmann stated.
