How U.S.-Canada Tariff Tensions Could Disrupt Business Events

President Donald Trump's proposed 25% tariff on nearly all goods from Canada has been put on hold for 30 days, but business event leaders are still nervous.

When the tariff was announced, Canadian Prime Minister Justin Trudeau matched the 25% tariffs on American goods in response. In addition, 10% tariffs on all goods from China will go into effect.

The U.S. Travel Association warns that the new tariffs could significantly decrease Canadian visitation and spending in the U.S. Canada remains the top source of international visitors to the U.S., with 20.4 million visits in 2024 generating $20.5 billion in spending and supporting 140,000 jobs.

Gregg Talley, CEO of Talley Management Group, an association and event management firm that works with U.S. national and global associations, plans large international conferences globally as well as in Canada. He is concerned about the tariffs. “This may have a chilling effect on attendance from the U.S., as well as internationally,” said Talley.

As part of their contingency planning, Talley’s team is reviewing insurance clauses tied to government actions that might affect registration numbers.

“We are investigating a clause in our contracts related to government action impacting attendance,” he added.

Another area of concern is the potential impact on professional services. Talley questioned whether U.S.-based vendors traveling to Canada for business would face additional barriers under the tariffs. He also noted that such policies could disrupt the global collaboration that underpins the events industry.

“This has the potential to upset the international understanding of how we all do business together,” he said. “There will be those who avoid attending U.S. conferences, not wanting to support a regime that is upsetting international norms.”

Economic Stakes of a Trade War

Economists say tariffs, essentially taxes on imported goods, could raise prices and slow economic growth. 

Dana Toland, chief event planning strategist and sourcing specialist at IT Exchange Group, is concerned about the ripple effect the tariffs may cause and has many questions. 

“Costs all around will increase from travel to hotels to goods and services. Will countries impacted by the tariffs impose arrival or departure taxes on U.S. visitors?  Is there a chance of a recession in these countries?  If there is a recession, will the value of the Canadian dollar decrease?  Would the devaluation offset the cost increases?  Will security become even more of an issue?”

Uncertainty is widespread.  “The whole thing is developing in real-time. For example, Trump agreed to pause tariffs with Mexico for a month, but it looks like they will escalate further with Canada,” said Shawn Cheng, regional director of North America, International Congress and Convention Association (ICCA). “One thing for sure is cost and pricing are going up. U.S. alcohol and items like orange juice are among the list of items Canada will put 25% tax on as a response, and the list is developing.”

SISO Weighs In

When it comes to trade shows, the tariffs should not have an immediate impact, said Vinnie Polito, CEO of the Society of Independent Show Organizers (SISO). “Should affected countries be unable to come to a resolution and should tariffs increase to a more significant level 25%+, it will have a negative effect as exhibitors from affected countries will start making alternative decisions on where to exhibit,” said Polito. 

Some Optimism Exists

“Part of me is optimistic that this is part of a larger negotiating tactic and will not last for an extended period of time,” said Greg Topalian, chairman of Clarion Events North America. “I believe part of Trump's strategy is to get countries like Canada and Mexico to the bargaining table to negotiate immigration and drug trafficking and this is a means to do that,” said Topalian. 

If this tariff war continues, events may become more insular. “Regionality will likely increase. For instance, Canadian events will likely have a very large Canadian attendance base, and U.S. events will likely have a large U.S. attendance base,” said Topalian.