Home Las Vegas TourismImpact of US-Canada Trade Dispute on Las Vegas Tourism

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 highlighted the advantages of his federal tax reforms for tipped workers while making pointed remarks about Canada—"Canada's nasty, they are, they're nasty," he declared at the Red Rock Casino Resort and Spa. His comments reflect an ongoing theme of antagonism toward Canada during his second term.

Three weeks later, the trade relations between the US and Canada have reached a new low as both countries engage in a bitter dispute. Following failed negotiations, the US announced it would impose 50% tariffs on approximately $20 billion worth of Canadian goods. In retaliation, Canada announced it would increase tariffs on American products, effective September 8.

A White House statement claimed that "Canada has been ripping off the United States for decades," describing a clear and deliberate pattern of abuse. In response, Canadian Prime Minister Mark Carney acknowledged the shift in relations, stating, "I recognized from the beginning that America has changed, and that we will not return to our old relationship."

The impact of these growing tensions on Las Vegas has been significant. Since 2025, international travel to Harry Reid International Airport has dropped by 7% last year, with a further 9% decrease reported in 2026. The biggest Canadian airlines serving Las Vegas, Air Canada and WestJet, have seen traffic reductions of 22% and 28% respectively in 2025, and continue to trend downward in 2026.

Reacting to the deteriorating US-Canada relationship, Las Vegas stakeholders are taking proactive measures. Steve Hill, the CEO of the Las Vegas Visitors and Convention Authority, has made several trips to Canada over the past year to ease concerns among potential visitors. Accompanied by MGM Resorts CEO Bill Hornbuckle, Hill emphasized their commitment to welcoming 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.

In a bid to attract more Canadian visitors, three downtown casinos owned by Derek Stevens—Circa, The D, and Golden Gate—launched the "Vegas At Par" promotion this year. This initiative offered hotel and gaming deals matching the currency exchange, which was notably favorable to Canadian travelers given the exchange rate of $1 USD to $1.3 CAD. Stevens remarked on social media earlier this year that "Las Vegas misses Canada."

Overall Canadian travel to the US dropped by 25% in 2025, according to government data. The number of Canadians visiting the US fell from 39 million in 2024 to just 29.1 million last year, with spending down $3.3 billion.

Analysts Laura Presley and Carter McCormack noted a marked shift in travel sentiment stemming from the new US administration's policies, indicating that by the end of 2025, return border crossings from the US accounted for two-thirds of all Canadian border crossings.

The latter half of the year typically brings a surge in travel to Las Vegas, with holidays like Labor Day, Halloween, Thanksgiving, Christmas, and New Year’s encouraging visitors. In addition, the fall and winter sports scene—including football, women’s basketball, F1 racing, and college sports—adds to the city's appeal. The current diplomatic tensions between the two nations may complicate this busy period.

Interestingly, hockey events may serve to bolster tourism from Canada. The Las Vegas Golden Knights, after making a strong showing at the Stanley Cup Finals, will host five games against Canadian teams in October and November, including matchups against the Toronto Maple Leafs and the Montreal Canadiens.

Consultant Brendan Bussmann, from B Global Advisors, mentioned that Canadian hockey fans are part of the principal travel demographic, alongside business and leisure travelers. He observed that Air Canada has fared better than WestJet in terms of business travel. Despite current challenges, Bussmann believes Canadian visitors will continue to play an essential role in Las Vegas’s tourism market, stating, "As we’ve 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."