Canadians are collectively canceling business trips to the U.S.

The U.S. Travel Association reports that a 30% decline in Canadian tourists could result in a $6 billion loss for the American economy, as highlighted by Pat Foran.

MONTREAL — The escalation of tariff threats was followed by provocative remarks about annexation, but it wasn't until reports of foreigners being detained at the U.S. border surfaced that Oscar Acosta chose to cancel his attendance at three business conventions across the border. Acosta, the CEO of the Ottawa-based startup Body M3canix, which specializes in fitness-tracking technology for extreme environments, felt initially unaffected. However, he became alarmed upon learning about Jasmine Mooney, a 35-year-old Canadian actress and entrepreneur, who was detained for 12 days while seeking a work visa in San Diego and subsequently banned from the U.S. for five years. "That struck a deep fear in my heart," Acosta stated. "As an entrepreneur from a visible minority, being Hispanic, I worried that I could face a similar situation." He is not alone. Canadians nationwide are increasingly cancelling business trips, withdrawing from conferences, and hesitating to make future bookings in the U.S. due to the backlash against President Donald Trump's policies. Chris Lynes, managing director at Flight Centre Travel Group Canada, noted a nearly 40% year-over-year drop in air business travel between Canada and the U.S. in February, coinciding with a significant rise in cancellations. "We've seen a sharp increase in conference cancellations for events planned in the U.S.," Lynes reported, mentioning that many firms expressed heightened anxiety about traveling due to anger towards the U.S. government.

Companies spanning various sectors, from banking and insurance to manufacturing, have chosen to cancel trips despite potential penalties or forfeited deposits. "One banking client cancelled six programs to various U.S. locations, including New York, Dallas, and Washington, D.C., with Las Vegas particularly affected," Lynes explained. Lynes' agency has reassured employees that it understands if they feel uncomfortable traveling to a company event in Los Angeles this summer. "Many people feel targeted; some may hold dual citizenship or be on visas. There's a growing discomfort and lack of confidence in traveling," he expressed. The long-term effects of these cancellations extend to as far as 2027, experts suggest. Corporate events that lack designated locations may be relocated to Canada, Mexico, or other international sites instead of America. A wave of economic nationalism has emerged in response to both threatened and actual tariffs, as well as belittling remarks from Trump about Canada potentially becoming the "51st state" and labeling former Prime Minister Justin Trudeau as "governor." However, the fallout from this tension has not been uniform, causing divisions within some organizations regarding plans for corporate retreats and prompting mixed feelings among employees. Despite the pushback, some companies are proceeding with events while employees hesitate. A Royal LePage conference scheduled for Nashville, Tennessee, in September will take place as planned, according to chief executive Phil Soper.

In an internal memo obtained by The Canadian Press, Soper mentioned that financial commitments for the event had been made long before the current political climate, and cancelling now would only negatively impact their network, not Trump or the U.S. economy. The decrease in corporate travel mirrors a broader retreat from U.S. trips altogether. Statistics Canada reported a 32% decline in Canadian road trips to the U.S. last month, while flights home by Canadian residents decreased by 13.5%. Deciding to forego opportunities for team building, skill enhancement, or potential contracts is not always easy. Acosta had already booked hotel accommodations for a planned investment-focused trip to Boston in May and a California aeronautics conference in July, and he was registered for an aerospace conference next year in Orlando, Florida, where he was set to moderate discussions.
"I even bought new tires to ensure safety and had my dog's passport issued," he recalled. "But ultimately, I had to cancel everything." Now, Acosta worries about missing critical chances to connect with venture capitalists and secure funding, but he feels he had no other option. "Why would I put myself at risk?"