Garry Douglas of the North Country Chamber of Commerce is focused on the future—when both nations can mend ties and rebuild economic bridges
By Larry Rulison, Times Union Staff Writer
ALBANY — Garry Douglas is waiting for the “after” — when the tariff and trade war between the U.S. and Canada ignited by President Donald Trump is finally over.
That’s when Douglas, the CEO of the North Country Chamber of Commerce, looks forward to picking up the rocks thrown by both sides and burying them.
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“It’s very bad right now,” Douglas told the Times Union this month.
How bad? Ask a Canadian whose livelihood relies on Canadians wanting to travel to the U.S.
Declining Canadian tourism
Cindy Tobin, manager of Travac Travel and Tours out of Ottawa, the Canadian capital, told the Times Union in an email that requests to book travel tours to the U.S. have fallen off a cliff. They have always been in huge demand, Tobin said, until this year.
“The day the tariffs were announced, the inquiries totally stopped,” Tobin said. “Not one call. Not one booking.”
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The Quebec Tourism Industry Alliance, known as the Alliance de l’industrie touristique du Québec in French, found in a recent study that 45% of Quebecois who had planned vacations in the U.S. this year were now canceling those plans, leading to $3 billion in lost revenue for U.S. businesses.
The tourism group, based in Montreal and Quebec City, said half of those people will vacation in Quebec instead.
Related reading: Adirondack tourism saw solid gains in 2024 but outlook for summer remains hazy
“The choices we make as travelers can have a positive impact on the local economy, in addition to sending a clear message to our international partners, especially in the current context,” Geneviève Cantin, CEO of the Quebec tourism group, said in a statement.
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Canada and New York have a symbiotic relationship when it comes to cross-border trade, according to statistics compiled by the office of Canada’s Consulate General in New York, Tom Clark. While New York state imported $20.5 billion of goods from Canada in 2024, New York state exported nearly as much to Canada, with $17.4 billion last year, according to the Consulate General’s fact sheet on trade with New York state.
Yet on Feb. 1, Trump ordered a 25% tariff on certain goods imported from Canada to the U.S. The first wave of tariffs went into effect March 4.
Canada responded on March 13, ordering 25% tariffs on $29.8 billion in U.S. imports.
Then on Thursday, Trump announced an additional 25% tariff on all cars and light trucks built outside of the U.S.
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The trade war is underway.
The impact of tariffs on cross-border commerce
Cross-border traffic into the U.S. began to dwindle even before the first round of tariffs went into effect. There was a 23% drop in the number of Canadians taking round, or return, trips into the U.S. by car last month compared to February 2024, according to Statistics Canada, which is similar to the U.S. Census Bureau. The number of return trips into the U.S. by Canadians was down 2.4% year-over-year during February.
Northern border communities like Plattsburgh, where the North Country Chamber of Commerce is based, have much to lose if the symbiotic relationship between the U.S. and Canada continues to sour.
Nearly 100 facilities tied to Canadian companies are located within the town and city of Plattsburgh, and an estimated 20% of the workforce in Plattsburgh either commutes across the U.S.-Canada border for work or works at a Canadian company within the U.S., Douglas told The Montreal Gazette this month.
Related reading: Tourism data shows Canadian visits declined in February
Plattsburgh International Airport, which bills itself as “Montreal’s U.S. airport,” is a prime example of how the North Country economy is intertwined with Canada, especially with the provinces of Ontario and Quebec that border New York.
Before the coronavirus pandemic, 70% of the travelers out of the Plattsburgh airport were Canadian, the airport’s director Chris Kreig told the Times Union. He said post-pandemic, the airport grew in popularity with U.S. travelers, so the split is now 50-50, he says, which means half of its ticket sales come from Canada.
“We are certainly watching Canadian passenger traffic closely,” Kreig said. “We saw an average number of Canadian passengers in March and continue to watch the impact of tariffs closely. Our airlines are ready to adjust capacity if demand either increases or decreases due to factors beyond our control.”
While there is little evidence yet that Canadian companies are pulling out of New York state, there is evidence that between the tariffs, Trump’s suggestion that Canada should be the 51st U.S. state, widespread calls for Canadians to boycott U.S. products, and reports that tourists from Canada have been stopped at border crossings and detained by immigration enforcement, some Canadians now have a very unfavorable view of Americans. That may lead Canadian visitors to decide they don’t want to spend their tourism dollars in the U.S., where the Canadian dollar is relatively weak anyway.
Douglas’ vision for post-tariff reconciliation
In a message to his membership posted to the North Country Chamber of Commerce this month, Douglas wrote that Canadian tourism numbers have also been disappointing because the Canadian dollar is valued at 70% to the U.S. dollar under current exchange rates.
That means Canadians have less spending power in the U.S.
Last month, car crossings from Canada through Plattsburgh were down 16% from February 2024. Douglas attributes that year-to-year decline on the weak Canadian dollar in his message to members.
“There is no question, however, that February marked the beginnings of some Canadians choosing to avoid U.S. visitation based on their reaction to U.S. tariffs and U.S. dealings with their country,” Douglas wrote. “And we are already hearing of annual group cancellations and normal summer bookings not being made.”
Douglas estimates that border crossings could eventually be down as much as 25% when the true impacts of the trade war are calculated.
Instead of complaining about that figure, however, Douglas has an optimistic take on hospitality.
“The remaining 75% are still coming,” Douglas said, “and we have to remind (our businesses) of that” and make them feel welcome.
Michael Cashman, supervisor of the town of Plattsburgh, which encircles the city of Plattsburgh on Lake Champlain, says the tariffs on Canadian imports have an outsized impact on places like the North Country, which rely heavily on cross-border traffic for tourism and trade.
Related reading: Impact of proposed tariffs: North Country businesses brace for uncertainty
Looking toward a collaborative future
Cashman said he is working with the North Country Chamber of Commerce on cross-border policies that could “lessen the impacts of these tariffs” on businesses and workers.
“Our region thrives when we work together, and through continued dialogue and partnership, I am confident we can find creative solutions that benefit both our local businesses and our Canadian neighbors,” Cashman said.
New York’s most powerful political leaders have also spoken on the issue, although the executive branch, in general, has vast control over U.S. trade policies.
During a news conference this month in Albany, Gov. Kathy Hochul was asked about the impact of the Trump tariffs on the economy’s supply chain.
Hochul singled out the North Country in her response.
“We continue pressing the federal government to realize the damage that this is doing to the people who supported the president,” Hochul said. “Much of upstate supported the president. This is the people that will be hurt the hardest, especially in the North Country.”
U.S. Senate Minority Leader Charles Schumer of New York also spoke up about the president’s trade policies with Canada.
“President Trump has unwisely and destructively started a tariff war with our closest trading partner and ally, Canada, which is driving up costs for New York families and driving away Canadian visitors — who are so vital to upstate New York’s economy,” Schumer said in a statement. “It’s unnecessary, it’s raising costs, and it’s just plain stupid.”
Top photo: A Canadian and U.S. flag flying side-by-side. Photo courtesy of pexels.com
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