Overview:
The Northeast's economic heartbeat—powered by cross-border tourism, local inns, breweries, and lakeside rentals—is facing an unexpected cooldown. Canadian tourists, once a reliable stream of summer revenue, are staying away in 2025 due to strained trade relations and tariff fallout. The Haskell Free Library, a symbol of U.S.-Canadian unity, now sits at the center of a broader economic downturn affecting multiple states. From declining hotel bookings to rising product costs for small businesses, the absence of Canadian foot traffic is triggering ripple effects across Vermont, New York, Massachusetts, and beyond. Local leaders and business owners are scrambling to adapt, launching regional advertising pushes and calling for stronger international cooperation. With projected losses reaching $12.5 billion nationally, the question remains—can the Northeast weather the storm?
DERBY LINE, VT – It’s not only maple syrup and lake-side bungalow rentals that are feeling the punch of the lack of Canadian visitors this summer. Even libraries must face new challenges brought about by the steep tariffs imposed by the Trump administration. Since 1904, the Haskell Free Library and Opera House has served two countries and their citizens as it straddles the border between Vermont and the province of Quebec. Now, that special relationship stands threatened. The Northeast holds its collective breath.
How will the numbers impact the economy? What are the projected results as we look to those “dog days” of summer?
Sticky Situation
According to Sen. Peter Welch, D-VT, “these tariffs are a self-inflicted wound,” prompting the senator to host a series of round-table discussions with small businesses.
“And they’re already raising prices for businesses, farmers and working families across rural America. Everyone will be affected by President Trump’s trade war. It doesn’t matter what your political point of view is or where you live,” Welch told Fox News in an interview, April 22.
Small business owners, i.e., breweries, motels, etc., have reported a fall in revenue across Vermont, according to new sources. For example, the owner of Alchemist Brewery, in Stowe, told reporters that some of the aluminum in her establishment comes from Brazil via Canada. Jen Kimmich, therefore, claims she has no choice but to raise prices by 5 percent.
During one of Welch’s round-table discussions, an innkeeper said, “This is long-lasting damage to a relationship, and emotional damage takes time to heal. While people aren’t visiting Vermont, they’ll be finding new places to visit, making new memories, building new family traditions. We will not recapture all of that.”
New York, New England Blues
“I think across the board, we could all say that our tourism numbers, for example, are down anywhere between 20-and-60% in all of our states,” Massachusetts Governor Maura Healey announced June 16. Officials from New England, New York, and Canada met to discuss and address the troublesome situation in Boston. The numbers are stark. Hotel reservations are down 45 percent in Vermont and bookings are also low in New York City by the same amount, according to the Sentinel Enterprise.
Connecticut’s tourism, although not as primarily impacted, is also struggling in 2025. State officials scramble to make every dollar count in the state’s budget. Billboards stretch down into New York, luring locals to travel farther north and help fill in the gap.
In New Hampshire, however, campground bookings are roughly on par with last year, according to online news source Seacoastline.
Domestic travelers continue in their quest to reconnect with nature – some things cannot change, no matter the politics. Yet, privately owned campgrounds are reporting an uptick in cancellations across the Granite State.
New Hampshire residents seem to be taking the dearth of tourists in stride. “They can stay in Canada,” Joshua and Missy Phillips, owners of Trailside’s Big Rock Campground, in Stratford, told reporters June 5. State officials continue to invest in advertising both regionally and in nearby Montreal.
Tightening Belts, Seeking Solutions
How will the Northeast collectively cope with the decline in Canadian tourism? Investing in regional advertising is a primary resource. Authorities are encouraging fellow Americans to enjoy natural wonders in New York and New England. Dialogue with neighboring Canadian provinces is also key, according to Massachusetts and Maine authorities. Residents are encouraged to support their local businesses.
According to Forbes, the US is projected to suffer a total of $12.5 billion in international tourism.